Expert tasks FG on more licenses to private investors in energy sector

An Energy Expert and the Managing Director of Ossiomo Industrial Park, Ologbo, Edo State, Dr. Uwa Igiehon, on Tuesday, tasked the Federal Government to grant more licenses to private investors in the energy sector in order to tackle the issues of power deficit in the Country.

Igiehon made the call during a facility tour in Ologbo, Ikpoba Okha Local Government Area in the State.

He said the reason the country is experiencing incessant grid collapse is because some of the facilities are obsoletes and should be replaced with the modern day technology.

“The reality of the situation is that, the national grid as it is, dates back to several decades. And all of the typical power transmission line is basically, the structure.

“In most cases, steel, then the conductors. And then the systems and others. The fact of the matter is, if properly constructed, the steel structures can last a very long time but those conductors are aged.

“And when they are aged, their performance deteriorates but more importantly, they actually start creating losses, massive losses.

“One of the biggest challenges we have in the national grid beyond the grid collapse that you are seeing is also the losses. The losses are over 50 percent according to certain people.

“So, the fact of the matter is that you need a tremendous amount of capital to sustain that. And efforts are being made, the federal government is making an effort to address all of that, which is very commendable.

“But the fact as well is that, over a period of time, the technology has moved on, the engineering has moved on, and there is no doubt about it that having independent power producers and having independent grids, is definitely a solution because if you have multiple independent grids, eventually, you will be able to connect these independent grids and there you have a national grid”, Igehon said.

Igiehon also said the other problem besetting the sector is that, when issues of energy is discussed, the financiers are not involved in the decision making process and which has negatively affected the sector.

“So it’s another way of engineering. For me, one of the really important constituents that is no heard about are the financiers. What is the financial community’s opinion about all of these things?

“For us engineers, it is always fantastic to say, we are going to change this transmission line, we are going to have a high grade and all sorts of things but at the end of the day, it has to be bankable otherwise you will spend a tremendous amount of time and at the end of the day, you will not really see because the fact of the matter is that, it has to be bankable.

“So what really is the opinion of the financial market as to how the power infrastructure should be developed? That is a critical question.

“And you know, no matter whether it is local investors, local financiers, international investors, international financiers. So for us, in our project as you have seen today, we represent local investors and local financiers.

“We also represent international investors and international financiers.

“So, all these questions should go to the financiers. What is the right structure whether it is generation, transmission, or distribution that the financiers will be comfortable with?

“It should not be that you come up with a structure and you go and ask them, can you finance this? No. Let them also be part of that discussion and deliberation and decision-making process”, Igiehon said.

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