AEDC Signs MoU with Power Analystics Solutions to Expand Network

Better days are ahead for electricity consumers in Abuja and its environs as Power Analystics & Solutions has signed a multi billion naira deal with CEC Africa Investment, core investor in the Abuja Electricity Distribution Company (AEDC), to expand its network.
In a ceremony in Abuja, Thursday, that attracted players in the power sector, including the Managing Director and Chief Executive Officer of Transmission Company of Nigeria (TCN), Usman Gur Mohammed, the Director of Power Analystics & Solutions, Tony Ezeani, said the company was bringing in more than $2bn into the deal to expand AEDC network, which include metering and other leverages that would gaurantee steady power supply in the Federal Capital Territory (FCT).
He said the problem of regular power supply is due to inability of Distribution Companies (DISCOs) to attract funding to the sector hence unable to install durable equipment to gaurantee steady power supply.
Ezeani said: “The problem of light in Nigeria is the problem of DISCOs, we need lots of investment in DISCOs. The reason we have been attracted to bring funds to AEDC is because of what CEC has been doing. It has been doing a lot of work and so the sector looks attractive to us hence we decided to come in to expand, do metering, so that Nigerians, especially those in Abuja, can have stable power.
“We are planning to branch to other DISCOs. We want to use Abuja DISCO for a model for others in Nigeria, to let Nigerians know that if there is investment in DISCOs there will be stable power supply.”
According to the Director, Power Solutions is bringing in both financial and technical support. “What we want to do is to invest with CEC, take over, invest money in Abuja DISCO and expand the distribution network,” he said.
The Managing Director of CEC Africa Investment, Emmanuel Katepa, noted that the MoU signing represents good omen for consumers, adding it was incumbent on every one to make the sector work.
“For us, the signing represents a partnership with a dynamic local content. We have been there since 2015 in the privitazation of the power sector. We have a proud history of operation in Zambia and Sierra Leone and what we always look for is to have a partner who will also help to navigate local issues. We are happy that we found Power Solutions, a very young dynamic group that seems hungry to make power sector work,” Katepa said.
He said there was need for a collaborative efforts to make the sector function optimally.
He said AEDC has of recent recorded lots of success stories despite the challenges. “It is one of the best DISCOs in the country,” he enthused.
“If you look at the broad aspect, you will know that one of the measures of power sector at the DISCOs side is the aggregate technical, commercial and collection losses. When we took over, the losses here were near 60 percent. As we talk now in the last few months we have managed to dip below 30 percent losses, so that is the general picture.
“But more specifically, we have installed over 200,000 metres in the period we have been here which is far short of the numbers required. This is partly because we have discovered as we go out that we have more customers who were not on our database. So as we go out the numbers keep going up. As you may be aware AEDC earlier in the year launched N10bn for metering, so we are tackling the problem,” Katepa said.
TCN MD, Usman Gur Mohammed identified non investment by DISCOs as one of the major challenges faced by the power sector in the country.
He disclosed that the signing of the MoU between Power Solutions and CEC will add greater value to power supply in Abuja.
He said much of such private investors were needed to take the sector to its full potentials.
He said lack of long term investment has made power supply in the country a nightmare, saying the country has one of the worse distribution networks in Africa.
The MD said untill big companies take advantage of the privitazation window by the Federal Government and invest in the sector, power supply in the country will be far from being sustainable.
According to Mohammed: “The sector is about investment. The reason DISCOs and Power Generating Companies (GENCOs) were privatised is because government does not have the investment to sustain and expand the network. Therefore anything we are going to do to bring investment into the sector, we are happy to do it. And the kind of investment we are looking at is the kind of investment these people are bringing in, with this MoU..
“We must fix the power sector to realise the potentials of the country, if we are to fight poverty we must fix our power sector,” he said.
He stated further: “The MOU of today will add more megawatts to the grid. Currently with the addition of Azura, we have over 2000 megawatts stranded capacityp we can’t feed to the grid. And this is because of lack of capacity by the DISCOs to pick the load. So, this can of arrangement will lead to the investment in DISCOs network in such a way that they will be able to take more power which is not even enough. If you look at the investment that TCN is doing it cannot be sustained by DISCOs. Currently about 40 percent interface between TCN and Disco are actually supplied directly from TCN network to the customers. That is, every fault from people’s houses like heater, iron hit our transformers directly. That means our transformers will continue to be damaged . DISCOs are supposed to build their own injection sub station and provide their own protection.but because there is no investment they are not doing that. DISCOs have not been able to bring investors into the sector.”

Author: News Editor

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