The Minister of Power, Adebayo Adelabu, has revealed that the federal government intends to allocate $800 million for the establishment of substations and distribution lines as part of the Presidential Power Initiative.
This was disclosed in a statement released by the ministry on Sunday.
The minister revealed this information while on a tour of the TBEA Southern Power Transmission and Distribution Industry in Beijing, China, as stated in the announcement.
The Minister announced that funding will be assigned for the development of substations associated with Lot 2, as well as for substations and distribution lines related to Lot 3, with a total of $400 million allocated to each lot.
Lot 2 encompasses the franchise regions of the Benin, Port Harcourt, and Enugu Distribution Companies (DISCOs). In contrast, Lot 3 pertains to the franchise areas of the Abuja, Kaduna, Jos, and Kano DISCOs.
He said, “When this administration came in last year, we inherited around 4 gigawatts (4,000 megawatts) of power, but within a year, we achieved a milestone of 5,170 megawatts, adding about 1,000 megawatts of power within the first year. It may seem small, but compared to the country’s history, this is commendable.
“Our plan is to achieve 6,000 megawatts of power by the end of the year through a combination of hydroelectric power plants and gas-fired power plants. We are also targeting 30 gigawatts of power to be generated, transmitted, and distributed by 2030, with 30 per cent of that being renewable energy.”
“If we assess the strength, capacity, and age of our existing network on the national grid, it is clear that it cannot adequately support our vision for the power sector. Hence, the need for the construction of the Western and Eastern super grids.
“Although we have been working on this since I assumed office, I can also confirm that the President fully supports this initiative because it will improve our transmission network, stabilise the grid, and expand the capacity and flexibility of the national grid.”
