A Review of the Nigerian Energy Industry

NERC grants Delta licence to generate electricity

Austin Ogwuda

16 December 2011, Sweetcrude, ASABA—The Nigeria Electricity Regulatory Commission (NERC) has formally granted a licence to the Delta State Government to generate electricity, thus becoming the first known state to obtain such licence.

Receiving the licence from the NERC representative, General Orho Obadan, rtd, at Government House, Asaba, Governor Emmanuel Uduaghan said he was elated that Delta State has become the first to be granted such licence, saying that he had mapped out nine areas for private sector involvement in power generation.

Uduaghan explained that the Federal Government has given approval to Delta State to generate 450 watts of electricity and to also determine its distribution.

Governor Uduaghan had while presenting his 2012 budget said “although stable power supply remains a national challenge, we have undertaken the tough decision to setup our own independent power plan.”

He said: “We have to do this considering that the state gets no more than 108 megawatts of electricity from PHCN leaving out a suppressed load demand of about 1000 megawatts. Delta IPP which, was embarked upon in 2009 has attained a reasonable landmark. Most of the equipment for the project has been procured and awaiting delivery.

“In keeping with our set objectives of realising our goal of diversifying the state economy and the three-point agenda that targets the socio-economic and industrial transformation of the state, our emphasis in the energy sector will remain robust, because stable power supply is extremely essential if our programmes are to succeed.

“This administration will continue to give priority attention to the completion of on-going power generation, transmission and distribution projects. We will continue to fund the operation and maintenance of generator and solar powered streetlights that have contributed immensely to the overall security situation in the state in addition to enhancing social/commercial activities in our major cities and towns.

This administration is determined to collaborate with other states in the region to acquire the unbundled/privatised PHCN assets, as soon as the details are worked out.”

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