The Minister of Power, Works and Housing, Mr. Babatunde Fashola at a meeting with the Acting Executive Secretary of the Nigerian Investment Promotion Commission (NIPC), Hajiya Ladi Katagum gave reasons why investment decisions on the development and deployment of coal power generation into Nigeria’s energy mix had been delayed, ThisDay reports.
Fashola revealed that there was a significant gap in the retail tariff proposed for coal as against the current tariff approved for gas and hydro power generation in the Multi Year Tariff Order (MYTO) of the Nigerian Electricity Regulatory Commission (NERC).
He said promoters of coal power wanted their tariff set at N36 per kilowatts hour (kwh), that is, N12 above the current N24/kwh average tariff used in the MYTO. The MYTO tariff is currently also under contention by consumers as being quite high. As such, he said this had to be structured properly in the power purchasing agreements (PPA) with the Nigerian Bulk Electricity Trading Plc (NBET) before moving forward.
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