The Nigerian Electricity Regulatory Commission (NERC) has said it was considering a request for special power trade tariff made by an Independent Power Producer (IPP) Azura Powers for sale of electricity generated from its 450 megawatts (MW) thermal plant located in Edo state.
Chairman of NERC, Dr. Sam Amadi, stated at a media briefing in Abuja that although the commission was considering the request by the IPP, it would however not engage in hasty decisions that could hurt operation in Nigeria’s emerging power sector.
Amadi disclosed that the request would be open for extensive discussion by stakeholders in the sector, adding that such request was peculiar in a sector that is undergoing a transitional phase in market rules and operations.
The 450MW Azura-Edo IPP is an Open Cycle Gas Turbine (OCGT) power station and an early project to be initiated by Azura Power in its 1000MW IPP facility being developed near Benin City.
The plant is sited on a 100 hectare, large enough to accommodate future expansion of the power plant. In line with extant regulations in the sector, the project has achieved certain key milestones that include acquisition of an IPP operational licence, Certificate of Occupancy (C of O), signing of a project implementation agreement with Edo state government, completion of an environmental and social impact assessment and resettlement action plan up to World Bank standards and grant of transmission connection.
It has also completed its equity financing framework and shortlisted for World Bank Partial Risk Guarantee (PRG) series for funding support. Accordingly, it is in its final rounds of negotiations on Power Purchase Agreement (PPA) with the bulk trader as well as negotiations on Gas Purchase and Transportation Agreements. Azura expects to reach financial closure soon and begin construction in 2013.