Nigeria's electricity crisis may see a breakthrough thanks to Siemens deal

Solving the electricity crisis in Nigeria requires urgent steps in light of the deteriorating conditions in the country, and companies losing millions of dollars due to the instability of supplies.

In the latest step to solve the electricity crisis, FGN Power announced that the deal with the German company Siemens will see great progress with the start of the arrival of electricity equipment next September, after a long wait, and this coincides with the federal government’s commitment to solve bottlenecks in the transmission networks. and distribution.

FGN Power, a special purpose company established in August 2020, revealed that electrical equipment from Germany; Among them are mobile transformers and substations, which are expected to contribute to improving the country’s electricity supply.

Create valuable opportunities

FGN Managing Director Kenny Inoue said the first phase of the Presidential Electricity Initiative (PPI) aims to modernize, rehabilitate and expand the national grid by investing in electricity value chains, including generation, transmission and distribution systems.

Electricity crisis
FGN Managing Director Kenny Inoue – Image from Twitter

He pointed out that Siemens is participating in the project thanks to its global experience in repairing electrical systems, as it did in Egypt recently, adding that its march in this field will create a rapid transformation in the value chains of electricity.

In addition, the project will stimulate economic growth, create job opportunities for youth and businesses, and promote the development of local content through training opportunities and support for capacity building in the sector.

He said the Nigerian government is ready to solve the supply problem in the country, which is why it launched the initiative to support the electricity supply industry in 2019, and aims to achieve commercial independence by facilitating investment in critical infrastructure for electricity delivery, as published by ESI Africa magazine.

He stressed that his country had made some progress with the recent visit of the Minister of Electricity, Abu Bakr Aliou, to Germany, approving the deal of mobile substations and transformers, concluded in December 2021.

He said, “The objectives of the minister’s visit to Germany, a month ago, included involving the directors of Siemens in the president’s plan related to the presidential electricity initiative to ensure our ability to implement the goals.”

He continued, “I am pleased to announce that these steps are beginning to bear fruit, and we will see the arrival of the equipment next September.”

He also announced the completion of the submission of a program that includes the regulations, standards and basic technical features of the project that the distribution companies and other partners will adhere to.

He said that the program will provide the minimum standards and requirements that companies must take advantage of in implementing the project, explaining that Siemens equipment must comply with these local laws and regulations.

What does equipment arrival in Nigeria mean?

The Permanent Secretary of the Ministry of Electricity, Nebulisa Ananko, sees the closing event as a milestone for the stakeholders in the sector.

Electricity crisis
Power plant in Nigeria – Photo courtesy of Nigeria Electricity

He said that the goal of the Presidential Electricity Initiative is to continue improving the entire operational network, to reach the electricity supply in Nigeria to 25,000 megawatts, but it aims to add 2,000 megawatts over the next 18 months.

While the technical advisor to FGN Power, Eduwo Oibango, stated that there are two parts of the project related to the onshore aspects that will take place inside Nigeria, and the maritime aspect that will take place abroad.

He stressed that Siemens will be responsible for designing and manufacturing equipment, and the contracting parties will be responsible for logistics, transportation and storage, as well as securing and modernizing substations.

He added that the new transformers are characterized by their ability to adapt to temperatures in Nigeria, unlike other transformers, with a bearing capacity of 5 degrees Celsius, and this extends their life for 30-40 years.

Although he attributed the delay in the project to the Corona pandemic; It is expected that the supplies that the mobile substations will provide, once they are operational in next September, will be reflected in the country.

“Within 6 months from now, we will have the first batch of mobile substation and transformer supplies on the country’s shores, and this will benefit the electricity grid,” he said.

“By next September, when all this equipment arrives, and we start adding it to the grid, Nigeria will start to feel a difference in the electricity supply,” he added.

According to the government, the first phase of the Presidential Electricity Initiative will provide reliable electricity to more than 40 million citizens and create 11,000 direct and indirect jobs for Nigerians.

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