State moves to liberalise electricity market, cut dependence on national grid
The Delta State Government has unveiled plans to liberalise the state’s power sector and attract greater private investment as part of efforts to expand electricity supply, boost businesses and reduce dependence on the national grid.
The State Commissioner for Works (Rural Roads) and Public Information, Mr Charles Aniagwu, disclosed this on Thursday during a press conference in Asaba.
He was joined by the Executive Assistant to the Governor on New Media, Mr Felix Ofou.
Aniagwu said the state was not interested in returning to an era when government solely controlled and operated businesses, stressing that the ongoing reforms were designed to create greater room for private sector participation through liberalisation and Public-Private Partnerships (PPPs).
According to him, the state is exploring opportunities to harness its abundant gas resources for electricity generation, particularly within the Kwale Free Trade Zone, which is part of Delta’s special economic zone.
He said investors were taken to the zone during the state’s economic summit to showcase the availability of gas as a key raw material for power generation.
Aniagwu said increased local power generation would reduce pressure on the national grid while making more electricity available to homes, businesses and other users.
He cited the 8.5-megawatt Independent Power Plant behind the state secretariat in Asaba as an example of the government’s power intervention.
According to him, the facility has enabled the secretariat complex to operate independently of the national grid.
“Once you have an alternative source of power for the secretariat, the energy that would have been consumed by the secretariat becomes available for homes and other users,” he said.
The commissioner also disclosed that the state had entered into a partnership with Supply Power to generate an additional 120 megawatts of electricity for the national grid.
He said the project formed part of the government’s wider strategy to improve power supply and support small and medium-sized enterprises that depend heavily on reliable electricity.
Aniagwu said the state government had also intervened in areas traditionally considered the responsibility of electricity distribution companies, insisting that inadequate power supply would not be allowed to hinder economic growth.
He cited the extension of the electricity grid from Abraka towards the Ndokwa axis as one of such interventions aimed at connecting more communities to electricity.
The commissioner, however, raised concerns over the practice of communities providing transformers and other electricity infrastructure, only for distribution companies to later collect bills without adequately accounting for investments made by the residents.
He said the government was prepared to continue supporting the electrification of communities, noting that improved power supply would stimulate economic activities, create opportunities and help address security challenges associated with unemployment and idleness.
Aniagwu also disclosed that the state was working with the Ministry of Energy and a committee set up to fine-tune Delta State’s energy regulatory framework.
He said the proposed energy commission would regulate new power producers, determine appropriate tariffs and oversee electricity distribution networks.
The commissioner explained that electricity distribution required proper planning, including decisions on the deployment of overhead and underground power lines, based on the peculiarities of different locations.
He said strong regulation was necessary to prevent electrocution and other hazards, protect power infrastructure and ensure fair pricing for consumers.
Aniagwu said the ultimate goal was to build an efficient and sustainable electricity sector capable of supporting households, communities and businesses across Delta State.
