Nigerian Electricity Regulatory Commission, NERC, has lamented that sourcing energy through generating plants by local industries account for over 40 percent of production cost in Nigeria.
NERC Chairman, Dr. Sam Amadi, said this during the inauguration of the technical team to develop a work plan on having a micro grid that would guarantee direct power supply to industrial clusters nationwide yesterday in Abuja.
He also argued that the innovation stems from the need to support industrialisation by increasing energy supply to industries, thereby cutting the cost of using alternative fuel energy.
Amadi also said that teaming up with the Manufacturers Association of Nigeria, MAN, to increase power supply to industrial clusters would have a far-reaching effect on reducing the cost of doing business and encourage the needed industrialisation of the country.
The commission early this year began critical campaign for off grid energy to expand power supply to rural areas, while canvassing for embedded power generation that allows Distribution Companies, DISCOs, to have more electricity to distribute.
“Few months ago, we thought about how to support
industrialisation by increasing energy supply to industries, thereby reducing the cost of doing business. I do know that energy cost accounts for 40 percent of cost production which is a huge drag on profitability, industrial capacity, as well as global competitiveness of Nigerian manufacturers.
“NERC has always thought about how we could unleash industrial potentials by solving the power supply needs of industries. We established the embedded generation regulation, independent distribution network regulation and the independent transmission network regulation. Towards the end of last year, we started thinking of how we can innovate in these regulations to help industrial clusters.
“We found very ready and willing partner in MAN so we have been collaborating and thinking of how we can drive this process. We have been having meetings with MAN in the past and these culminated in setting up a committee, a task team to help us think around the regulatory, technical, financial and social issues surrounding steady power supply to industries through the micro grid for the industrial clusters initiative,” Amadi said.
President of MAN, Dr. Frank Udemba Jacobs, said “Power constitutes 40 percent of our cost of production and therefore any initiative or innovation that will assist us in reducing this amount will be highly welcomed.’’
He said the committee will converge on Abuja next week and work for another week to develop the document. “We would like the committee to complete the work within one week.’’

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