The Minister of Power, Adebayo Adelabu has lamented the rate at which bulk electricity consumers abandon the national grid to generate their own electricity.
Adelabu emphasized that grid connection as a power source is more reliable than captive power plants currently being used by bulk electricity consumers.
He regretted that despite generating a record 5,155MW, it is not being taken up.
The minister spoke on Thursday at the Board retreat of the Nigeria Electricity Liability Management Company in Lagos.
He said: “The majority of bulk electricity users, such as industries, are off the grid due to lack of trust and confidence in the past.
“They now have their own captive power plants in their industries which is more expensive.”
He said the continued use of captive power rather than grid connection is more expensive.
“The average cost of producing captive power is about N350 to N400 per kilowatt-hour for those connected to gas lines. For diesel, it’s about N950 while petrol is about N550,” he said.
He stated that efforts would be made to encourage such bulk users to return to the grid.
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“Once consumers and industries see the trust, the confidence and the stability we are giving, they would be encouraged and reconnect to the grid for a cheaper source of power.
“We aim to attain the threshold of a new era in power delivery with a target of 6 gigawatts by the end of December 2024, in the short term, and the Federal Government is still focused on Vision 30-30-30.
“By 2030, we aim to achieve 30GW in the medium term, with renewable energy constituting 30 per cent and universal access in the long term. We must align on the principles guiding our activities and the strategies driving our progress,” he added.
The minister disclosed that the government is currently using a multi-pronged approach to attain these targets for the Nigeria electricity supply industry.
The minister also mulled the idea of differential tariff for up peak period to stimulate demands.
“Having noticed a drop in demand during the off-peak period, we plan to stimulate demand by having a different tariff during the off-peak period. These are some of the efforts we are looking at, especially with our smart meters,” he explained.
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