BENUE SET TO GET TO EMBEDDED POWER GENERATION

Benue State is set to be the beneficiary of an US$18 million dollar investment in embedded power generation courtesy of Contec Global. This came to light following the visit of the Executive Governor of Benue State, Dr Samuel Ortom to the Nigerian Electricity Regulatory Commission (NERC) in Abuja who led the delegation of the State’s investors this 4th October. Contec Global seeks to construct a power plant with a name plate capacity of 10MW for embedded generation.

Embedded generation otherwise referred to as “distributed generation” is usually a small-scale production of electricity which is connected within the distribution network in such a manner that the generation plant has no direct access to the transmission network. This is unlike the usual power plants that are connected to the transmission system through which the generated capacity is wheeled to loads such as distribution network in a process overseen by the System Operator. The distributed generation power plant can either be connected to the existing distribution company serving the area or to an independent electricity distribution network (IEDN) which is separately licenced by NERC. The Distribution Company operating in Benue State is the Jos Electricity Distribution Company.  

In a release from the office of the Public Affairs Department of NERC headed by Dr. Usman Abba Arabi it was intimated that the NERC Chairman Dr Anthony Akah MNI while welcoming the delegation stated that NERC was ready to assist State Governments invest in the power sector. NERC Chairman also invited state governments to key into on-going consultations on the making of mini-grid regulation which could be explored by States to provide electricity to areas that are not connected to an existing grid or are underserved.

Akah assured the Benue delegation and the investors of their willingness to provide them with technical assistance on the procedure for the issuance of the relevant licence for the project. Ortom pointed out that the power plant will be dedicated to industrial layouts in Benue State for the benefit of economic activities in the State. The proposed power station will be powered by gas. Under the Electric Power Sector Reform Act any person seeking to engage in embedded power generation requires a generation licence under Section 64(1) of the Electric Power Sector Reform Act.