NERC amends Zuma Energy’s 1,200mw (coal) power plant licences; also in Gombe

No Comments » June 16th, 2015 posted by // Categories: Energy Development Project



 

Summary:

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The licenses were issued to Itobe 1 Coal Power Limited (for 300mw), Itobe 2 Coal Power Limited (for 300mw), Itobe 3 Coal Power Limited (for 300mw), and Itobe 4 Coal Power Limited (also for 300mw). The four companies are owned by Zuma Energy Nigeria Limited, which had previously secured license for a 1,200mw coal power plant.

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AS part of efforts to diverse the nation’s energy sources, the Nigerian Electricity Regulatory Commission (NERC) has issued licence for the generation of electricity from coal in Gombe state.

The licence was issued to  Trombay Power Generation Limited for a  500MW power plant to be located at Wajari Village along Dadinkowa Road, Yamaltu local government area of Gombe State.

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GUARDIAN

NERC amends Zuma Energy’s 1,200mw power plant licences

  • By EDITOR on February 17, 2015

THE Nigerian Electricity Regulatory Commission (NERC) has issued four on-grid licenses to Zuma Energy Nigeria Limited to operate a combined 1,200 Megawatts (MW) power plant at Itobe, Kogi state. Each unit of the power plant has capacity to generate 300MW.

This brings to two such licenses issued for coal power generation this year.

Zuma’s licence is an amendment to an earlier one issued in 2011. The amendment is to enable it assign the licence to four different special purpose vehicles (SPVs) and ease of project finance.

NERC’s Chairman /Chief Executive, Dr Sam Amadi said that Zuma Energy was a major stakeholder and a pathfinder in coal-powered generation which is guiding Nigeria towards diversifying electricity generation.

“The beauty of Zuma licence is that it is guiding Nigeria towards diversifying power generation,” Amadi said.

In line with the Transitional Electricity Market stage recently declared by the Commission, Amadi urged Zuma Energy to work towards securing a power purchase agreement through the Nigeria Bulk Electricity Trading so that it could commence operations in not too distant time.

He advised the company to expedite actions on its construction work with the same vigour with which it pursue its licences and make electricity available to Nigerians through the power plants.

The four entities are Itobe 1, 300mw; Itobe 2, 300mw; Itobe 3, 300mw and Itobe 4, 300mw all are coal powered plants.

Managing Director, Zuma Energy Power Ltd., Dr. Innocent Ezuma in his response said that the amendment to an earlier licence which led to issuance of four different licences was for ease of implementation.

“With this subdivision, it means we can commence work on two plants simultaneously.”

Responding to questions from media men over environment issues, Ezuma assured that the company was adopting the latest clean coal technology which has less smoke emission and has minimal impact on the environment.

Four Commissioners of NERC who were present at the award ceremony, Dr. Steven Andzenge- Legal, Licensing and Enforcement; Engr. Mrs Mary Awolokun- Engineering Standards and Safety; Dr. Abba Ibrahim- Government and Consumer Affairs; and Mr. Patrick Umeh- Finance and Management Services took turn to advise the company on the need to expedite action in realising the economic value of the licences.

 


 

More investors scramble for coal power licences

  • By Emeka Anuforo, Abuja on February 15, 2015

• Construction to begin on $5b Itobe project

A HUGE number of nationals and foreigners is bidding for licenses to generate electricity from Nigeria’s abundant coal deposits, the Nigerian Electricity Regulatory Commission (NERC) has said.

Also, investors are now preparing to commence construction work on the $5 billon Itobe coal power project, which has been broken down into four phases and is expected to generate a total of 1,200mw of electricity when the four plants are completed.

Nigeria has about 2.8 billion metric tonnes of coal deposit, which has remained untapped for years. Speaking at the weekend in Abuja when the commission issued four licenses to four firms to generate electricity from coal at Itobe, Kogi State, NERC Chairman, Sam Amadi, noted that there was a growing interest to generate power from Nigeria’s untapped coal deposits.

The licenses were issued to Itobe 1 Coal Power Limited (for 300mw), Itobe 2 Cola Power Limited (for 300mw), Itobe 3 Cola Power Limited (for 300mw), and Itobe 4 Coal Power Limited (also for 300mw). The four companies are owned by Zuma Energy Nigeria Limited, which had previously secured license for a 1,200mw coal power plant.

According to Amadi, “Zuma Energy Nigeria Limited has license to produce a total of 1,200 megawatts power from coal. Subsequently, Zuma has come to us to further amend the license to enable fast approach to implementation. The most important thing is that Zuma is a pathfinder.

“Up till now, we didn’t have any prospect of generating power from coal. Today, the prospect is very bright. Apart from having the single largest indigenous license for power in this country as at today, Zuma holds the largest stake in local electricity generation, having 1,200 megawatts license for coal and about 400 megawatts of thermal power in Egbema, Imo State. So, the firm is a major stakeholder.”

He stressed that many other firms have applied for licenses for coal-to-power, adding: “The good thing about the Zuma project is that since then, the commission has had more people come up for coal license. Just three weeks ago, we gave license to a new IPP developing about 500mw of power from coal.

“That means that the prospects are getting better, because the likes of Zuma took the trouble to go through this tunnel, but now we know that the prospect of generating more megawatts from coal is high. Just yesterday, a group from Lagos met me and want to generate from coal.”

“Clearly, Nigeria is moving to a diversified energy mix. We have other licenses on solar, wind, and now a major load-base likely from coal in the next couple of years. I want to implore other Nigerian entrepreneurs to take the opportunity to explore not just gas, but solar and other renewable sources of electricity.

“As you know, before now the prospect of getting a Power Purchase Agreement (PPA) was very remote. But now, with all the work done in de-risking the market, we believe that all our licensees can go to financial close as quickly as possible and get a PPA and move to site.”

Chairman of Zuma, Dr. Innocent Ezuma, stressed that the initial license for 1,200mw coal power generation was broken into four smaller licenses for ease of implementation and financing.

“Basically, the licenses were broken down for ease of implementation. As you may understand, to build a megawatt of coal power station, you require about $3 million. If you are building 1,200mw, you require approximately $5 billion,” he told newsmen at the weekend.

“The sub-division of this main license means that we can embark on two projects at once, we will not wait for the first one to complete and reach the COD before we go to the second one.”

He added: “At this time, because of the very good and credible rules and regulations that NERC has provided for NBET, as soon as we have PPA for the four power companies, there won’t be any problem with financing, because the tariff we are adopting is MYTO 2 tariff, which is cost-reflective.


NERC licenses firm to generate 500MW from coal in Gombe

  • By Emeka Anuforo, Abuja on January 29, 2015

AS part of efforts to diverse the nation’s energy sources, the Nigerian Electricity Regulatory Commission (NERC) has issued licence for the generation of electricity from coal in Gombe state.

The licence was issued to  Trombay Power Generation Limited for a  500MW power plant to be located at Wajari Village along Dadinkowa Road, Yamaltu local government area of Gombe State.

Chairman of  NERC,  Dr. Sam Amadi, who spoke at the handover of the licence in Abuja, yesterday,  stressed the importance of coal in the nation’s efforts to exploit other energy avenues.

Amadi said:  “I commend your patience and perseverance to follow through your application. Coal power plant is becoming important the effort to in diversify our fuel source.

“I hope you will follow through your timelines in constructing your power plant with the same dedication you displayed in the course of this application.”

The Commissioner, Legal Licensing and Enforcement, Dr Steven Andzenge described the licence as remarkable, noting that “it is a milestone in the sense that it is in line with NERC’s objective of diversifying our fuel sources.’’

Group President of Trombay Power Generation Limited, Jitendes Kumar Sachdeva described the exercise as most welcoming. He commended the commission for its transparency and commitment in processing the application.

“I am glad to receive this licence. The Commission is a truly transparent and smart regulatory agency. You people are very smart,” he noted.


 

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