Oyo state governor Seyi Makinde has flagged off the construction of 11MW Independent Power Project.
The project will be executed by Elektron Energy on a Build-Operate-Transfer model.
Speaking at the groundbreaking at the Sate Secretariat, Agodi, Ibadan at the weekend, Governor Makinde said the facility will provide power to government facilities within the Oyo State Secretariat, Agodi, Ibadan and environs.
Other facilities to enjoy from the 11MW hybrid power solution include; 12 healthcare facilities, including Adeoyo Maternity Teaching Hospital, State Hospital Ring Road, the Lekan Salami Sports Complex, Adamasingba, the judicial complexes at Iyaganku and Ring Road, the state’s House of Assembly, and a selection of schools within a defined catchment from the generation plant at the Oyo State Secretariat.
He said the project which would be delivered in eight months is to cost N8,027,430,214, with the state government repaying the Elektron Energy for over a ten-year period within which the energy company will operate and manage the infrastructure.
He added that the Special Purpose Vehicle that Elektron Energy will use to execute the contract is Ibadan Hybrid Power Limited (IH Power), noting that IH Power will also be responsible for managing the distribution infrastructure through Ibadan Hybrid Distribution Limited, which will hold an Independent Electricity Distribution Network (IEDN) license.
Makinde said:”Nigeria has had a long history of problematic public power supply.Well, from the days of NEPA, through to the PHCN and now DISCOS, the problem has essentially remained the same. Nigeria has been unable to generate and distribute enough energy to provide a 24/7 power supply to citizens. In fact, at a time, people even changed the acronym NEPA to mean Never Expect Power Always.
“Over time, individuals who can afford to have purchased different sizes of petrol or diesel generators or invested in solar energy as alternative sources of power supply.But we are not here today to discuss the problem. We are here for one solution to this perennial problem – for the groundbreaking ceremony of the Oyo State Independent Power Project.
“Before I go into the details of this project, it is important to clarify issues related to power distribution in Nigeria.Some have stated that only the Federal Government has the power to distribute energy. So any power generated at the state or local level must be fed to the national grid before it can be distributed. This is only partly true.
“Under the Electric Power Sector Reform Act (EPSR), 2005, independent power distribution is allowed. Regarding “Distribution Licenses,” Section 67(1) states that “Subject to such terms and conditions as the Commission may fix in the licence, a distribution license will authorize the licensee to construct, operate and maintain a distribution system and facilities…”
“Based on this, the Oyo State Government is entering into a contract with Elektron Energy to finance and develop an 11MW hybrid power solution for the Oyo State Government and some of its facilities within the Oyo State Secretariat, Agodi, Ibadan and environs.
“The Special Purpose Vehicle that Elektron Energy will use to execute this contract is Ibadan Hybrid Power Limited (IH Power). IH Power will also be responsible for managing the distribution infrastructure through Ibadan Hybrid Distribution Limited, which will hold an Independent Electricity Distribution Network (IEDN) license”
