THE Federal Government has approved Siemens’ pre-engineering contract, thus enabling the company to start work on Nigeria’s 25,000 megawatts expansion project.
In a statement obtained by Vanguard, yesterday, the company stated: “The pre-engineering contract forms the initial step in the Presidential Power Initiative (PPI), formerly the Nigeria Electrification Roadmap, outlined by Siemens and the Federal Government of Nigeria in July 2019.
“The PPI project aims to upgrade the electricity network to achieve the operational capacity of 25,000 megawatts (MW) from the current average of around 4,500 MW, through a series of projects spanning three phases.
“Siemens will begin pre-engineering works for the transmission, distribution, and meter data management systems (MDMS) infrastructure across the country, to enable the development of a functional, efficient and reliable electricity grid system. Comprehensive studies and power system analysis software for the Nigerian utilities are also included.
“Nigeria’s power system is suffering from an imbalance between power generation and demand. Despite more than 8,000 MW of operational power generation capacity in the country, only an average of 4,500 MW reliably reaches consumers.
“This inadequate power supply results in regular brownouts and blackouts and has restrained Nigeria’s economic development. Raising Nigeria’s operational electricity capacity to 25,000 MW will power various industries and businesses, as well as significantly improve access and reliability of power supply to the Nigerian people.
This contract is one important step as part of the development of vital electrification infrastructure that will ensure reliable power supply, remove constraints in Nigeria’s electricity grid, secure additional revenue for investors, and build competent local content and capacity,” said Onyeche Tifase, Managing Director Siemens Nigeria.
“The projects will create vital direct and indirect jobs for Nigerians and local businesses, thus enabling economic growth and increased productivity, based on the supply of reliable electricity.”
The pre-engineering contract is the start of a longer-term approach. Phase 1 of the PPI will focus on essential and quick-win measures to increase the system’s operational capacity to 7,000 MW and to significantly reduce the ATC&C financial losses.