The Nigerian Governors’ Forum (NGF) has proposed import or export of power from the national grid or between states.
The Forum recommended the development of policy to guarantee that states with excess generation capacity can either export to the national grid or other states, and vice versa.
This was contained in its policy recommendation to the Ministry of Power on the National Integrated Electricity Policy and Strategic Implementation Plan (NIEPSIP).
The forum recommended that states be given the freedom to independently create their markets and to do so in accordance with the particular conditions that support them, such as the availability of renewable energy sources like solar, wind, gas, and hydro.
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Furthermore, it explained that where states power generation licensee produces more than the state’s requirement, it should be free to export such to other states or the national grid and vice versa.
“Many states may rely on the national grid for bulk supply of power, rather than license new generation plants due to technology or market viability constraints. In the same vein, States with excess/surplus generation capacity from their wholesale markets may need to make that capacity available to the national grid as spinning reserves for grid stability or sell to other states with less power generation resources. Besides these two instances, there might also be other reasons for such bilateral interconnections or inter-state power transactions” the proposal read.
The document further called on the NIEPSIP to promote transactions between the federal wholesale market and licensees and states’ electricity licensees across the generation, distribution, and transmission channels to avoid stranded generated power and also lower the cost of delivering power to states.
It also stated that the NIEPSIP should facilitate power purchase transactions between subnational outside the national grid.
By: Babajide Okeowo
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