February 23, 2018

FEC approves framework to increase distribution capacity by 2000 MW

FEC approves framework to increase distribution capacity by 2000 MW

The federal executive council (FEC) has approved a new framework to expand the 33KV and 11KV electricity distribution lines in the country.

The framework will ensure distribution of 2,000 megawatts of generated energy currently not being distributed from power stations.

FEC gave the approval on Wednesday during the council’s weekly meeting.

Addressing state house correspondents after the meeting, Babatunde Fashola, minister of power, said about 7,000 megawatts of electricity is currently generated in the country but the existing national grid cannot transmit and distribute more than 5,000mw.

He said the new framework would bring about an investment arrangement in which the distribution companies (DiScos)  provide 60 percent while the federal government would contribute the remaining 40 percent.

Fashola, whose ministry also heads the works and housing sectors, said the DiScos would be compelled to make additional investments which they were supposed to have made.

“The process will involve international investment for the procurement of the equipment, lines and all of the accessories to build those networks and there will be more under international procurement standards,” he said.

“The federal government will put its own 40 percent and ask the DisCos to put their own 60 percent and other parties who are interested will have the opportunity to improve on the investments.”

The minister added that more power plants would be completed this year “which will add almost 1,600MW to the grid.”

“We can’t continue to accumulate power that doesn’t get to the people, so this framework is to start the process,” he said, adding: “Government is now saying we can’t sit down idle doing nothing, let’s start something, a framework for investment.

“Once those prices are agreed, then we will call the private sector owners of the DisCos, present our own 40 percent and ask for their own.

“As soon as the pricing is complete, we intend to persuade government to start making its investment. What we have done as a ministry is a formulation of policy to government to say this is the next thing we must do and government has approved that policy.”

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