Nigeria’s electric power sector has historically been incapable of meeting the needs of Africa’s largest and most populous nation. The country has roughly 3,500 megawatts of installed generating capacity, but insufficient maintenance, intermittent gas supply, grid instability and other factors routinely reduce available capacity to less than 2,000 MW.
To its credit, Nigeria adopted sweeping regulatory reforms in 2005 aimed at the unbundling of the national utility as well as the creation of a deregulated and competitive market for generation and distribution, with open access to transmission and transparent wholesale power sales. Nearly six years after the enactment of the landmark Electric Sector Power Reform Act (the Act), the federal government has finally gotten serious about attracting foreign private capital to its ailing power sector
On Aug. 26, 2010, President Goodluck Jonathan’s Presidential Action Committee on Power (PACP) launched the Roadmap for Power Sector Reform, outlining a comprehensive plan to develop 37,000 MW of additional generating capacity over the next nine years. Acknowledging that it cannot support the immense capital requirements to meet its generation targets, and recognizing that independent power is the most reliable piece of Nigeria’s generation portfolio, the Roadmap includes several features designed to support nonrecourse project financing of independent power projects.....--By Keith Larson, Hogan Lovells
To its credit, Nigeria adopted sweeping regulatory reforms in 2005 aimed at the unbundling of the national utility as well as the creation of a deregulated and competitive market for generation and distribution, with open access to transmission and transparent wholesale power sales. Nearly six years after the enactment of the landmark Electric Sector Power Reform Act (the Act), the federal government has finally gotten serious about attracting foreign private capital to its ailing power sector
On Aug. 26, 2010, President Goodluck Jonathan’s Presidential Action Committee on Power (PACP) launched the Roadmap for Power Sector Reform, outlining a comprehensive plan to develop 37,000 MW of additional generating capacity over the next nine years. Acknowledging that it cannot support the immense capital requirements to meet its generation targets, and recognizing that independent power is the most reliable piece of Nigeria’s generation portfolio, the Roadmap includes several features designed to support nonrecourse project financing of independent power projects.....--By Keith Larson, Hogan Lovells
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