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.
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