Makinde inaugurates N8 billion independent power project

Governor of Oyo State, Seyi Makinde, has officially started work on the 11MW Independent Power Project.

Elektron Energy will carry out the hybrid power plant project on a Build-Operate-Transfer basis.

Governor Makinde said the facility will provide power to government facilities within the Oyo State Secretariat, Agodi, Ibadan and environs, speaking at the groundbreaking at the State Secretariat, Agodi, Ibadan, over the weekend.
He debunked the myth that energy distribution is solely the responsibility of the federal government, and that any power generated at the state or local level must first be fed into the national grid before being distributed.

The Governor argued that independent power distribution is legal, citing Section 67(1) of the Electric Power Sector Reform Act 2005, which states, “Subject to such terms and conditions as the National Electricity Regulation Commission (NERC) may fix in the licence, a distribution license will authorize the licensee to construct, operate, and maintain a distribution system and facilities.”

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12 healthcare facilities, including the Adeoyo Maternity Teaching Hospital, State Hospital Ring Road, the Lekan Salami Sports Complex, Adamasingba, the judicial complexes at Iyaganku and Ring Road, the state’s House of Assembly, and a selection of schools within a defined catchment from the generation plant at the Oyo State Secretariat, will benefit from the 11MW hybrid power solution.

He stated that the project will cost N8,027,430,214 and will be completed in eight months, with the state government repaying Elektron Energy over a ten-year period during which the energy company will operate and manage the infrastructure.

He went on to say that Ibadan Hybrid Power Limited (IH Power) will be the Special Purpose Vehicle that Elektron Energy will use to carry out the contract, and that IH Power will also be in charge of managing the distribution infrastructure through Ibadan Hybrid Distribution Limited, which will hold an Independent Electricity Distribution Network (IEDN) license.
“‘Light,’ said Makinde. To different people, this word means different things. However, when the average Nigerian refers to “light,” they are referring to electricity, or power supply.

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“Public power supply in Nigeria has a long history of problems.

“Well, the problem has essentially remained the same since the days of NEPA, through the PHCN, and now DISCOS.” Nigeria has been unable to generate and distribute enough energy to ensure that citizens have access to electricity 24 hours a day, seven days a week. People even changed the acronym NEPA to mean Never Expect Power Always at one point.

“Over time, those who could afford it have purchased various sizes of petrol or diesel generators or invested in solar energy as alternative power sources.

“However, we are not here to discuss the issue today.” “We’ve come to witness the groundbreaking ceremony of the Oyo State Independent Power Project, which is one solution to this perennial problem.” Before I get into the specifics of this project, I’d like to address some questions about power distribution in Nigeria.

“Some have claimed that energy distribution is solely the responsibility of the federal government. As a result, any electricity generated at a state or local level must first be fed into the national grid before being distributed. That is only partially correct.

“Independent power distribution is permitted under the Electric Power Sector Reform Act (EPSR) of 2005. “Subject to such terms and conditions as the Commission may fix in the licence, a distribution license will authorize the licensee to construct, operate, and maintain a distribution system and facilities…” says Section 67(1).

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“As a result of this, the Oyo State Government has signed a contract with Elektron Energy to finance and develop an 11MW hybrid power solution for the Oyo State Government and some of its facilities in Agodi, Ibadan, and the surrounding areas.”

“Ibadan Hybrid Power Limited is the Special Purpose Vehicle that Elektron Energy will use to carry out this contract” (IH Power). Ibadan Hybrid Distribution Limited, which will hold an Independent Electricity Distribution Network (IEDN) license, will be in charge of managing the distribution infrastructure.

“This 11MW solution is referred to as a hybrid power solution because it includes a 10MW gas-fired power generation system and a 1MW PV solar system.”

“Elektron Energy has both the experience and the financial wherewithal to carry out this project,” he said, adding that the company “owns and operates existing IPPs in Nigeria.”

“The project is being warehoused here at the Oyo State Secretariat, and so the state secretariat and government facilities that enjoy proximity to the secretariat will benefit,” Governor Makinde said of the project’s beneficiaries.

“When complete, this 11MW hybrid power solution will provide power to:

“Adeoyo Maternity Teaching Hospital and State Hospital Ring Road are among the 12 healthcare facilities. As you may be aware, our administration has made significant investments in world-class diagnostic and treatment equipment at these hospitals, which has a direct impact on approximately 15,622 patients each year.

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“Adamasingba’s Lekan Salami Sports Complex. Some people went to town to say we commissioned a swimming pool when we commissioned the main bowl in September of this year. Well, I’m happy to report that the so-called “swimming pool” may be approved by the Confederation of African Football as the new home of the Super Eagles playoffs in 2022!

“Under the ‘Light-Up Oyo’ project, this IPP will also power a 10km radius of public lighting.” Of course, where there is light, there is security and economic development, as we all know.

“The Iyaganku and Ring Road judicial complexes, the Oyo State House of Assembly, and a number of schools within a defined catchment from the Oyo State Secretariat’s generation plant.”

He also revealed that, while this project will initially serve Oyo State Government facilities, the government is already considering incorporating similar projects into the administration’s vision to facilitate the expansion of the country’s economic base by providing power to industrial catchments, particularly the Moniya Business District.

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“As a result, we’re very enthusiastic about this project. It will be ready in six to eight months, according to the contractors. The Oyo State Government will repay Elektron Energy’s capital expenditure investment over a ten-year period during which the energy company will operate and manage the infrastructure under the terms of our agreement.

“The project will cost eight billion, twenty-seven million, four hundred and thirty thousand, two hundred and fourteen naira in total” (N8,027,430,214). He went on to say that the project is being carried out on a Build-Operate-Transfer basis.

The state Commissioner for Energy and Mineral Resources, Seun Ashamu, spoke earlier at the event, which was attended by top government officials, traditional rulers, and community leaders, among others. He highlighted the various efforts of his ministry to ensure the government’s goals are met.

“As a result, it is projects like this that will ensure the long-term viability of much of what we are doing in the state,” he said, “because we will have the assurance of 24 hour electricity.”

“Right now, we have an 11-MW gas-solar hybrid plant with dedicated distribution infrastructure.”

“Once operational, it will lead to increased productivity, the elimination of dirty fuel generation, increased government staff productivity, and long-term cost savings.”

“The project’s impact is quantifiable: it will affect the Executive (about 25 million man hours), Judiciary, and Legislative arms of government’s productivity; it will power 12 healthcare facilities (where about 15,000 patients are seen annually); a 10-kilometer radius of public lighting; and selected schools within the radius.

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“The IPP will initially serve Oyo State Government facilities, but it has the potential to spread to industry and the wider society, contributing to the Administration’s vision of facilitating the growth of the State’s economy while improving livelihoods.”