Anioma Energy Cooperative takes Advantage of Electricity Act 2023 signed by President Tinubu

Anioma Energy Cooperative takes Advantage of Electricity Act 2023 signed by President Tinubu

…Makes History as the first Community-Based Energy Cooperative in Nigeria

…Delta State Governor Sheriff Oborevwori to Preside over Ground-breaking Ceremony

…Signs MoU with Firm to generate 10 Megawatts at first instance

… To Provide Sufficient Electricity for the Business Class in Anioma Land in Delta North Senatorial District

The Anioma Energy Cooperative, an association of business operators in Delta North Senatorial District, of Delta State, Nigeria has taken advantage of the newly signed Electricity Act 2023 signed into Law by President Bola Ahmed Tinubu a few weeks ago by signing a Memorandum of Understanding (MoU) with Bastanchury Power Solutions Limited, to generate electricity for the Anioma Community.

The MoU which was signed in Asaba, the state capital, is for the initial generation of 10 megawatts of electricity, which could be upgraded as fast as possible.

The Electricity Act 2023 mandates electricity-generating companies to either generate power from renewable energy sources, purchase power generated from renewable energy, or procure any instrument representing renewable energy generation.

The act enables states, companies, and individuals to produce, transmit and distribute electricity promoting empowerment in the energy sector.

The act states that anyone may construct, own or operate an undertaking for generating electricity with a cap of o1MW in aggregate or as NERC may determine from time to time, without a license.

The act mandates the National Electricity Regulatory Commission (NERC) to regulate the sector in Nigeria but also mandates them to transit regulatory duties to states who have adopted the bill and established their own regulatory commissions.

The act grants lawmakers the power to carry out oversight responsibilities and function over the NESI through its respective committees on Power in the Senate and House of Representatives.

The Act 2023 replaces the Electricity and Power sector reform act 2005.

The act provides for states to issue licenses to private investors who can operate mini-grids and power plants within the state, however, it precludes interstate and transnational electricity distribution.

Only Lagos, Edo, and Kaduna states currently possess electricity market laws and can independently regulate their markets, while other states without such laws will be regulated by the NERC in terms of electricity generation and transmission.

Meanwhile, the Electricity Act was first passed in July 2022 and it was made to replace the Electric Power Sector Reform Act (EPSRA), which was signed into law by former President Olusegun Obasanjo in 2005.

It became important to draft the 2023 Electricity Act because the former extant law guiding Nigeria’s electricity sector was the EPSRA which was no longer capable of tackling the post-privatization issues in the sector.

The EPSRA created a single electricity market with one sole regulator, meanwhile, electricity has always been a concurrent legislative matter. So, there had to be a total repeal, which finally occurred with the President Signed it into Law some weeks back.

President Bola Ahmed Tinubu

Before now, Bastanchury had an existing business relationship with the Delta State Government for the generation of 850 megawatts which is being consumed by the government facilities within the capital territory.

Speaking after signing the dotted lines, the president of Anioma Energy Cooperative, Mr. Chukwuka Nwokposi, stressed the importance of reliable electricity for a functioning economy. 

Decrying the epileptic power supply in the country, Nwokposi believed that the MoU with Bastanchury Power Solutions Limited would provide sufficient electricity for the business class in Anioma land (Delta North). 

He explained that the cooperative society was an association of business operators who had pooled their resources to generate electricity that would power their enterprises. 

Chairman and Managing Director of Bastanchury Power Solutions Limited, Chidi Goziem, noted that the Anioma Energy Cooperative would off-take its generated power.

Goziem stressed that the MoU complied with the existing regulations of the Nigerian Electricity Regulatory Commission (NERC) pending the fledging of the state’s energy policy.  “We are grateful to the Anioma Energy Cooperative leadership committee for bringing this to our attention; purchasing power in bulk. 

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“As usual, Bastanchury would source means to effectively fund the project and make energy available for the members. “We are starting with 10MW, but we intend to do more as fast as possible,” Goziem said.

He hinted that the groundbreaking ceremony for the project which would be conducted in the coming weeks, would probably be presided over by Governor Sheriff Oborevwori whose administration “has expressed his commitment to continue the power programs of former governor Ifeanyi Okowa across the state. 

“We know, through sources within the system, that there are extended discussions on implementing the state power policy. Our prayer, therefore, is that the deliberations would be fruitful so that there would be fewer challenges for us to provide electricity for every Deltan who needs it.” 

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