The Nigerian electricity landscape has been undergoing significant transformations in alignment with the country’s goal of promoting a competitive national electricity market.The EPSRA 2005, now repealed by the Electricity Act 2023...The Nigerian electricity landscape has been undergoing significant transformations in alignment with the country’s goal of promoting a competitive national electricity market.
As the Nigerian electricity market progresses to the next market stage, NBET’s role is under scrutiny, particularly regarding its long-term sustainability and relevance. Given NBET’s crucial responsibility over the years, is the NESI ripe for NBET’s exit from the market? Can the NESI succeed without NBET’s operations in its market design?
In determining which licensee is contemplated under Section 7, the TCN and the Gencos are not contemplated under this provision. The primary responsibility of TCN is not to engage in the sale of electricity. GENCOs are not allowedto buy and sell electricity amongst themselves. Therefore, “Other licenses” in section 7 implies either Discos or trading licensees.
The readiness of NESI for NBET’s exit depends on various factors, including considerations regarding the emergence of the state electricity market, regulatory frameworks, infrastructure, and the capacity of market participants. In conclusion, as the prospect of NBET’s exit presents challenges and opportunities for NESI, careful deliberation and strategic planning are essential to navigate this transition successfully. A collaborative approach with industry stakeholders is crucial to ensure Nigeria’s electricity sector’s seamless and sustainable evolution towards a more competitive and resilient future.Before flagging, please keep in mind that Disqus does not moderate communities.
The Presidential Initiative on Compressed Natural Gas ended its nationwide compressed natural gas rollout yesterday with the unveiling of Touchstone Global Investment Services CNG-powered tricycle assembly plant in Shagamu, Ogun state.