Delta moves to liberalise power sector

…as it partners to generate 120MW

The Delta State Government has said it is pursuing reforms in the power sector to attract private investment, expand electricity supply and reduce the state’s dependence on the national grid.

Already, the state has entered into a partnership with Supply Power to generate an additional 120 megawatts of electricity for the national grid.

The State Commissioner for Works (Rural Roads) and Public Information, Mr Charles Aniagwu, who disclosed this at a press conference in Asaba, said the initiative was part of the government’s broader strategy to improve electricity supply and support small and medium-sized businesses whose operations depend heavily on reliable power.

Aniagwu said the government was not seeking to return to an era when government alone controlled and operated businesses, stressing that the ongoing reforms were designed to create room for greater private-sector participation through liberalisation and public-private partnerships (PPPs).

According to him, the government is exploring opportunities to harness Delta’s abundant gas resources for electricity generation, particularly within the Kwale Free Trade Zone, which forms part of the state’s special economic zone.

He said investors had been taken to the zone during the state’s economic summit to demonstrate the availability of gas as a raw material for power generation.

Aniagwu explained that increased local power generation would reduce pressure on the national grid and make more electricity available to other users.

He cited the 8.5-megawatt Independent Power Plant behind the state secretariat in Asaba as an example, noting that the facility had 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 explained.

Aniagwu said the state government had also intervened in areas traditionally regarded as the responsibility of electricity distribution companies because it was determined not to allow poor power supply to undermine economic growth.

He cited the extension of the electricity grid from Abraka towards the Ndokwa axis as one of such interventions, saying the objective was to ensure that more communities were connected to electricity.

He, however, expressed concern over the practice of residents and communities being required to provide transformers and other infrastructure, only for electricity distribution companies to subsequently collect bills without adequately accounting for the investments made by the communities.

According to him, the state government was willing to continue supporting efforts to energise communities because improved electricity supply would stimulate economic activity, create opportunities and potentially reduce security challenges associated with unemployment and idleness.

Aniagwu said the government was also working with the Ministry of Energy and a committee established to fine-tune the state’s energy regulatory framework.

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He explained that the proposed energy commission would play a crucial role in regulating new power producers, determining appropriate pricing and overseeing distribution networks.

The Commissioner noted that electricity distribution required careful planning, including decisions on whether to deploy overhead, underground or other forms of power lines, depending on the peculiarities of each location.

He stressed that proper regulation was necessary to ensure that electricity expansion did not expose residents to electrocution or other hazards, while also ensuring fair pricing and protection of power infrastructure.

Aniagwu said the ultimate objective of the reforms was to create a more efficient and sustainable power sector capable of supporting businesses, communities and households across Delta State.