LAGOS ECONOMIC SUMMIT (EHINGBETI 2014)
HOW CAN ELECTRICITY TO LAGOS BE ACCELERATED? Presented by: Professor Bart Nnaji Chairman/CEO, Geometric Power Tuesday, April 8th, 2014
Comparison of Lagos to select Megacities 3 Rio de Janeiro suffers from the power problems in Brazil Los Angeles enjoys excess supply of power and the city generates more than it consumes
Overview of the Nigerian Power Sector 4 • Wide gap between supply and demand • Obsolete and unreliable generation assets • Weak and inadequate transmission infrastructure • Overloaded distribution network • High technical and commercial losses
Electricity Delivery in Lagos 5 • Value chain alignment • Fuel • Power Generation • Power Distribution
Lagos can use multiple fuels 6 • Natural gas • LNG NG • LPFO • Crude Oil • Solar for grid stabilization • Wind @ shore lines
Generation Solution 8 • Purchase of power from the grid • Direct Purchase • Vested power through NBET Plc
Generation Solution: Embedded Generation 9 • Emergency Power • Regular Power Development • Lagos State development of power • Contracting with IPP developers • PPP development with IPP developers
Emergency Power: The Fuel Challenge 12 The use of LPFO as a fuel will have the following challenges: • LPFO Requirement: A 220MW plant requires 45MT of LPFO per hr. (based Egbin LPFO consumption)1000MW will require 204.5MT/hr (172mln liters /hr @80% availability) • LPFO Availability: LPFO can be obtained from the 3 refineries: • (i) Kaduna • (ii) Warri • (iii) Port Harcourt • 50,000 MT is available on daily basis and is currently allocated by priority to: • (i) MAN (ii) Cement Manufactures and (iii) Other Users. This implies that massive importation of LPFO will be required.
Emergency Power: The Fuel Challenge 13 • LPFO Cost : The cost of LPFO (ex depot) from the 3 refineries is as follows • (i) Kaduna – N68/liter • (ii) Warri – N107.99/liter • (iii) Port Harcourt – N107.99/liter • (iv) Costal Transportation – N85/liter • This implies that the fuel component of power tariff will be 14.60 N/Kwh (using costal transportation)
Distribution Solutions 14 • Only state with 2 DisCos • Need to improve on network quality • Need to install meters (pre and post) • Need to improve on automation in billing and collection • Need to install SCADA for monitoring of power distribution and leakages • Need to have manageable clusters (economic electricity ring-fences) within DisCos
Effect of Power Sector Reform 15 • Privatization-DisCos • LGS is part owner two DisCos • no longer helpless • LGS can assert its influence by partnering with the DisCo operators to plan for efficient and effective distribution of power with Lagos.
Effect of Power Reform: Institutions 16 • NERC • NBET Plc • GACN • NAPTIN • NELMCO • EMS • etc.
Effect of Power Reform: Cost Reflective Tariff 17 • Power • Gas • Solar, wind, etc.
Other Effects of Power Reform 18 • Anyone or government can nowparticipate in power solutions • Capacity building to support power sector • Legal • Financial • Environmental • ICT • Power Equipment Manufacturing • etc
Aba IPP: Gas Pipeline Facilities 19 Gas Pipeline End Units Gas Pipeline Pigging OFS (heater left, control container right) Osisioma Flow Station (OFS-filter) Pipeline route
Aba IPP: Other Facilities 22 OVERHEAD LINES CONSUMER CENSUS TEAM OVERHEAD LINES
19 Thank you www.geometricpower.com