Scottish firm Aggreko, which specializes in providing temporal power solution and temperature control across the world, is presently in talks with the five electricity Distribution Companies (DISCOs) to provide entrenched power to Nigeria.
The power generation talks involves a generator that will be connected to the distribution network and which will consist of a smaller or modular generators that use a variety of generation technologies such as solar, wind, biomass, diesel, fuel, crude oil and hydro.
This is considered a useful means of dedicating power to state and local governments, eligible customers and others. The right regulatory frame work will be implemented for people to know the prices to be charged.
David Taylor-Smith, Aggreko’s Regional Managing Director in Lagos said that the company is desirous to discuss with the 11 DISCOs in the country about the embedded power solution opportunities. He also said that Aggreko has its manufacturing company in Scotland, is already operating in 28 African countries including Nigeria, and is providing about 1.3GW of electricity across the continent.
In Africa, the firm focuses more in Nigeria as a potential market as the regulated tariffs are less than the cost of production and no business will excel if the tariffs are less than the cost of production. Therefore, the right regulatory environment is required.
Nigeria, South Africa and Kenya are the three African markets where the firm will be set up for permanent businesses in equipment and their team of engineers. They were chosen for their economies, which are bigger and a great demand for power.
According to Aggreko’s Managing Director, Nigeria, Mr. Alaba Owoyemi, in 2005, about 20MW in Abuja was installed through the company’s partnership with Geometric Power. At present, the firm is supporting the manufacturing sector, and most of the manufacturing companies depend on them.