Oredola Adeola

… launches $20m emergency project with Utilita to deliver first 20MW embedded electricity generation   by December 2024

Oredola Adeola

Amid Nigeria’s persistent grid collapses and recent vandalism of the Shiroro-Mando 330kV transmission lines 1 & 2, which has plunged major parts of Northern Nigeria into darkness, Kano Electricity Distribution Company (KEDCO) is investing $100 million to establish a 100MW “Safe Grid” for Kano, Katsina, and Jigawa States, aiming to provide 24-hour power to critical industries, commercial centers, and government infrastructure while reducing reliance on the national grid.

Sani Bala Sani, Head, Corporate Communications, KEDCO, signed this in a statement obtained by Advisors Reports on Tuesday.

According to him, due to the lingering effects of the challenges the Transmission Company of Nigeria (TCN) is currently facing in supplying energy to the company’s franchise area, KEDCO is still receiving less than half of its allocation from the grid.

He emphasised that the development has caused great disruptions for the company’s customers, institutions, and businesses while challenging our company’s financial performance.

Sani said, “The ‘Safe Grid’ is expected to be powered by embedded electricity generation in KEDCO’s network to ensure energy security within the network and eliminate the risks associated with absolute dependence on the grid such as unreliability and total blackouts, enabling key industries and socio-economic activities to thrive in Kano, Katsina, and Jigawa States while safeguarding jobs and competitiveness in our network.

“This project will build the first 20MW power plant (of the 100MW) with Utilita under an Emergency Project valued at $20 million that will be operational by the end of the year to begin supply for the “Safe Grid”.

“The generation units are already available and KEDCO is accelerating project development ahead of installation and commissioning in the Tamburawa area.

“KEDCO will also purchase electricity for the “Safe Grid” from the 10MW Haske Solar Power Plant (built by the Nigerian Sovereign Investment Authority (NSIA) and the Ministry of Finance Incorporated (MOFI) and from the 16MW combined capacities from Tiga and Challawa Hydroelectric power projects built by the Kano State Government, bringing the total initial supply in the ‘Safe Grid’ to 46MW.

Furthermore, KEDCO is discussing with the Federal Ministry of Power to take over and complete the 10MW Katsina Wind Farm project and supply it into the ‘Safe Grid’.

“A further 54MW will be supplied through additional power plant projects using Gas and Solar.
The KEDCO’s spokesperson emphasised that a new parallel distribution grid architecture is being built to take this ‘Safe Grid’ to all key locations and supply areas in the Franchise Area (Kano, Katsina, and Jigawa) starting from Kano State.

“‘Safe Grid’ is already connecting the Dawanau International Grain Market through a dedicated 40km line (90% completed), conceived and executed by KEDCO and its core investor – Future Energies Africa (FEA).

He further explained that KEDCO is engaging and partnering with the State Governments to determine the “Safe Grid” supply locations that will ensure the most economic value for its citizens, focusing on enhancing and securing jobs in industries, agro-processing, and commercial hubs, and safeguarding supply to critical Government Infrastructure.

KEDCO also explained that the Governors of the three (3) states under its franchise area (Kano, Katsina, and Jigawa) consisting of Governor Abba Kabir Yusuf, Dikko Radda, and Umar Namadi (and their respective State Assemblies) have been great supporters of the ongoing turnaround programme in KEDCO.

“We plan to continue partnering with the State Governments to provide an enabling environment and accelerate laws for the first Joint Electricity Regulation structure across the 3 States.

“This will enable KEDCO to power the “Safe Grid” for the benefit of the 3 States from any of the power plants being built in the embedded network.

“The “Safe Grid” will complement the ongoing “Utility 2.0” project earlier announced and being embarked on with 31 key developers to build 60MW of mini grids.

“Developer partners in Utility 2.0 include Bagaja, Elektron, Paras, Grid Crux, Strom, Prado, Axxela, Bayshore, and Husk (amongst others).

“Interestingly, as Bagaja has already commenced building projects in Charanci (Katsina) and Kafin Hausa (Jigawa) KEDCO is encouraging “Utility 2.0” developers to accelerate the pace of their projects in light of the lingering supply constraints in our network,” the spokesperson said.

Sani further explained that as part of a measure to foster reliability and affordability, KEDCO currently has the most competitive industrial Band A rates in the country with its partnership with the Manufacturers Association of Nigeria (MAN) branches in our States and still intends to maintain competitive rates with ‘Safe Grid’ through competitive bilateral grid contracts for the benefit of our valued customers.

“KEDCO is excited to be the first DisCo to offer 24-hour supply through the ‘Safe Grid’ initiative and ascribes to the visions of our State Governors in making our franchise area attractive for industrial and agro-processing businesses to provide the jobs needed to improve the economies of the region, in which stable power is crucial.

“Our vision is to enable re-industrialization and socio-economic empowerment of our franchise area through safe, stable, and cost-competitive electricity supply, keenly focused on our customers’ satisfaction,” he said.

The DisCo has therefore called on all Electricity Supply (and Gas Supply Companies) working within its network to partner with the company in providing more affordable electricity rather than operating in isolation leading to higher costs for consumers.