Page 11 - AfrElec Week 34 2021
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AfrElec POLICY AfrElec
New report says PIB will help
make more gas available to
Nigeria’s power sector
NIGERIA AFRICAN Energy, an independent research gas pipeline projects,” the research association
association, has said that the newly adopted wrote. “Combined, these may break down some
Petroleum Industry Bill (PIB) is likely to make of the major barriers for new independent power
more natural and associated gas available for plants (IPPs).”
domestic thermal power plants (TPPs). It went on to say that it expected gas to
In a recently published report on the Nige- become the primary fuel for electricity produc-
rian power sector, African Energy noted that tion in Nigeria. “Gas supply will be crucial. Gas
the federal government’s efforts to promote gas- will continue to fuel Nigeria’s power sector for
fired electricity production were progressing many years to come, while oil continues to play a
more slowly than expected. As a result, Nigeria key role in the country’s economy,” it said.
is likely to see the installed capacity of gas-fired The report also noted that Nigeria did not
TPPs reach 18,300 MW by 2025, but only 7,600 currently have the generating capacity or the
MW, or less than half of total capacity, will be transmission and distribution infrastructure
available for generation. needed to meet current demand for electricity.
This gap is already present and will grow This could change if the government moves
wider over the next few years because the coun- ahead with plans for liberalising the energy
try’s gas supply systems are not adequate to meet industry by re-tendering of state-owned
demand, it explained. It also stressed, though, National Integrated Power Projects (NIPPs) and
that conditions were set to improve in the long privatising Transmission Company of Nigeria
term as the result of the government’s passage of (TCN), the national power provider, it said. It
the PIB. also drew attention to Abuja’s consideration of
“The passing of the Petroleum Industry Bill proposal for franchising power distribution
will provide much-needed clarity for the sector systems and for promoting the development of
and could unlock new gas supply to the domes- mini-grids.
tic market, as will the construction of major
Week 34 26•August•2021 www. NEWSBASE .com P11
