Don't Miss

Coal to power will solve epileptic power – FG

By BusinessNews Staff on November 6, 2013

The Federal Government has assured electricity consumers that the coal to power initiative would assist in solving the problem of persistent epileptic power supply as presently being experienced in the country.

Minister of Power, Prof. Chinedu Nebu, who said this while receiving officials of Zuma Energy Group, led by its Chairman, Dr. Innocent Ezuma, last week in Abuja, said the initiative will increase power generation capacity when fully explored.

He said the government is determined to ensure a secured energy mix for Nigeria through development of vast coal resources for power generation. He added that the quantum of coal deposit was large enough to provide electricity for the country for the next 20-30 years, with reserves unproven in the same region.

According to him, the President Goodluck Jonathan’s Administration is passionate about the coal-power project, just as he acknowledged that Nigeria cannot solely depend on the thermal and hydro sources of power.

Expressing disappointment and frustration over persistent activities of vandals, whose stock in trade is to constantly vandalize the nation’s Oil and Gas pipelines, the Minister said, now than ever before, Government is committed to ensuring alternative source of fuel on sustainable level is provided to fire the power plants.

As a pioneer in coal to power, the Minister commended Zuma Energy’s consistence in the pursuance of the coal project, while assuring that government on its part will put in place a suitable framework for the Power Purchase Agreement, PPA, as well as a Partial Risk Guarantee (PRG) to ensure that, off-takers buy all the power generated from the company’s plant.

The Minister, who expressed optimism that the coal-power project would be a success, also disclosed that the African Development Bank (AfBD) had already indicated interest with regard to the provision of Partial Risk Guarantee (PRG) for coal to power project in the country.

In his remarks earlier, the Chairman of Zuma Energy, Dr. Innocent Ezuma had stated that the Company looks forward to a joint collaboration with the Government for coal-power development with the hope of ensuring energy security for the country.

He briefed the Minister on the project structure; this he said was in three phases of exploration, mining and power development stages.

Dr. Ezuma, thereafter presented a proposal to the Minister on Public Private Partnership, PPP, between the Zuma Energy and the Federal Ministry of Power.

[Vanguard]

headline