Coal Power: NERC Amends Zuma’s Licence For 1200MW Plant

The Nigerian Electricity Regulatory Commission (NERC) has amended and separated into four different parts the statutory licence earlier granted to Zuma Energy Nigeria Ltd.

This separation was undertaken for the ease of construction of a 1200 megawatts (MW) coal power plant at Itobe, Kogi state.

By this amendment, the NERC, last weekend, assigned four different licences to four new beneficiary Special Purpose Vehicles (SPVs), which will now take up the construction of the power plants in the capacities of 300MW respectively.

The companies, Itobe 1, 2, 3 and 4 Coal Power Plant Limited are still under the stable of Zuma Energy, however, they will each build 300MW capacities coal power plants within a specific timeline.

The Chief Executive Officer of Zuma Energy, Innocent Ezuma, who spoke  at the presentation of the four licences to the companies by the Chairman of NERC, Sam Amadi in Abuja, stated that Zuma had earlier applied to NERC for its licence ot build a 1200MW coal power plant to be amended.

Ezuma said: “Basically it is for ease of implementation. As you may understand, to build 1MW coal power station you will require about $3 million. So, if you are building 1,200MW, you will require approximately $5 billion and this is a huge amount of money for any investor at this time when Nigeria is just beginning to tap into its coal resources.”

He added that the decision to seek an amendment on its earlier licence was majorly for ease of construction.

Also, it was gathered that the companies under Zuma will separately negotiate Power Purchase Agreements (PPAs) and tariff rates with the Nigerian Bulk Electricity Trading Plc and NERC.

4 COMMENTS

This site uses Akismet to reduce spam. Learn how your comment data is processed.