The Nigerian Electricity Regulatory Commission (NERC) and Manufacturers Association of Nigeria (MAN) pushed forward an ongoing discussion to upgrade the quantity of electricity supplied to industries across the country and had inaugurated a task team to fine tune the processes for the establishment of the grids. At the inauguration was the President of MAN, Dr. Frank Udemba Jacobs, who explained that energy costs accounts for 40% of cost of production for industries in Nigeria and stated that the new effort could have a far-reaching impact on the cost of production in the country.
The task-team which comprises eight men from both divides was inaugurated in Abuja by the Chairman of NERC, Dr. Sam Amadi, who noted that the team evolved from the need for the country’s power sector to effectively support her efforts at industrialization by increasing the amount of energy supplied to industries. According to both parties, parts of the discussion include the development of micro electricity grids to service industrial clusters in the country.
NERC had in the past made critical regulations to encourage off-grid electricity supply to industrial clusters in the country by the establishment of the embedded generation regulation, the independent distribution network regulation and the independent transmission network regulation. These three critical regulations were aimed at helping to deal with providing some kind of modular power both for off-grid and for rural clusters. These regulations are now being innovated to match the current energy problems of industrial clusters so as to help them achieve global competitiveness of Nigerian manufacturers.
According to Dr Sam Amadi, the team has a thematic term of reference that include developing a policy and regulatory framework for viable and feasible micro grid for industrial clusters; develop business models for prioritizing the financial viability of micro grid technologies within existing framework; identify relevant stakeholders and key interest groups and describe what they will likely contribute to the micro grid industrial cluster initiative; as well as develop a framework for grid interface, evacuation agreement and purchase obligation.