KEDCO plans exit from national grid, to invest N169bn to generate 100MW

The Kano Electricity Distribution Company (KEDCO) disclosed plans to invest $100 milion (N169 billion at N1659/ $) in a safe grid through partnership and initial investment of around $100 million to develop a 100 megawatt (MW) for Kano, Katsina, and Jigawa states. A statement by Head, Corporate Communications of KEDCO, Sani Bala Sani, said the […]

The Kano Electricity Distribution Company (KEDCO) disclosed plans to invest $100 milion (N169 billion at N1659/ $) in a safe grid through partnership and initial investment of around $100 million to develop a 100 megawatt (MW) for Kano, Katsina, and Jigawa states.

A statement by Head, Corporate Communications of KEDCO, Sani Bala Sani, said the initiative that would provide 24-hour power supply to key industries, commercial hubs, and critical government infrastructure would begin its exit from the national grid while eliminating reliance on the national grid.

Sani said the plan was due to the lingering effects of the challenges the Transmission Company of Nigeria (TCN) is currently facing in supplying energy to its franchise area that has led to it receiving less than half of its allocation from the grid.

He stated this has caused great disruptions for its valued customers, institutions, and businesses while challenging the company’s financial performance.

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He said the ‘Safe Grid’ will be powered by embedded electricity generation in KEDCO’s network.

“This project will be built using, first, a 20 MW power plant (of the 100MW) with Utilita under an emergency project valued at $20m 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 in discussion with the Federal Ministry of Power to take over and complete the 10MW Katsina Wind Farm project and supply it into the ‘Safe Grid’.”

He said 54MW would be supplied through additional power plant projects using gas and solar with a new parallel distribution grid architecture built to take the electricity to all key locations and supply areas in its franchise area, starting from Kano State.

He further disclosed that, “The ‘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). The Administration of their Excellencies – Abba Kabir Yusuf, Dikko Radda, and Umar Namadi (and their respective State Assemblies) have been great supporters of the ongoing turnaround programme in KEDCO.”

“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-industrialisation and socio-economic empowerment of our franchise area through safe, stable, and cost-competitive electricity supply, keenly focused on our customers’ satisfaction.”