Speaking at the groundbreaking ceremony at the State Secretariat, Agodi, Ibadan, at the weekend, Makinde revealed that the facility would provide power to government facilities within the Oyo State Secretariat, Agodi, Ibadan and its environs.
He argued that the notion that only the Federal Government could distribute energy, and that any power generated at the state or local government level must be fed to the national grid before it could be distributed, is partly true.
Citing Section 67(1) of the Electric Power Sector Reform Act 2005, which provides that, “Subject to such terms and conditions as the National Electricity Regulation Commission (NERC) may fix in the licence, a distribution license will authorise the licensee to construct, operate and maintain a distribution system and facilities,” the Governor maintained that independent power distribution is legal.
Other facilities that would benefit from the 11MW hybrid power solution include: 12 healthcare facilities, including the Adeoyo Maternity Teaching Hospital; the State Hospital Ring Road; the Lekan Salami Sports Complex, Adamasingba; the judicial complexes at Iyaganku and Ring Road; the state House of Assembly and a selection of schools within a defined catchment from the generation plant at the Oyo State Secretariat.
Makinde noted that the project, to be executed by Elektron Energy, is to cost N8,027,430,214 and would be delivered in eight months, with the state government repaying the Elektron Energy over a ten-year period within which the energy company would operate and manage the infrastructure.
“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.
This 11MW solution is called a hybrid power solution because it comprises 10MW gas-fired power generation and a 1MW PV solar solution.
He expressed confidence that Elektron Energy, which owns and operates existing IPPs in Nigeria, had both the experience and the financial wherewithal to carry out the project.
The governor disclosed that, although the project would initially serve Oyo State Government facilities, the government was already thinking of incorporating similar projects into the administration’s vision to facilitate the expansion of its economic base by making power available to industrial catchments with particular reference to the Moniya Business District.
Speaking earlier at the event, which was attended by top government functionaries, traditional rulers and community leaders, among others, the state Commissioner for Energy and Mineral Resources, Seun Ashamu, highlighted the various efforts of his ministry to ensure the goals of the government are achieved.
“It is projects like this that will ensure the sustainability of much of what we are doing in the state as we will have the guarantee of 24 hours of electricity.
What we have today is an 11MW gas and solar hybrid plant with a dedicated distribution infrastructure.
Once commissioned, it will result in improved productivity, eradication of dirty fuel generation, increased productivity of government staff and long-term cost savings.
Ashamu explained that the IPP, which impact is measurable, would initially serve Oyo State Government facilities but has the potential to spill over to industries and the wider society, thereby feeding into the administration’s vision to facilitate the expansion of the state’s economy while bettering livelihoods.
Oyo Governor flags off Power Project