Determined to ensure a secured energy mix for Nigeria, the Government has again reiterated its interest in the development of vast coal resources for power generation.
The Coal to Power initiative when fully explored will increase power generation capacity, thereby assisting the country to overcome persistent epileptic power supply as presently experienced.
Minister of Power, Prof. Chinedu Nebo, who disclosed this today while receiving in audience, the Zuma Energy Group, led by its Chairman, Dr. Innocent Ezuma, said that the quantum of coal deposit in the country was large enough to provide electricity to the nation for the next 20 – 30 years, with reserves unproven in the same region.
According to him, the President Goodluck Jonathan’s Administration is passionate about the coal-power project, just as he acknowledged that Nigeria cannot solely depend on the thermal and hydro sources of power.
Expressing disappointment and frustration over persistent activities of vandals, whose stock in trade is to constantly vandalize the nation’s Oil and Gas pipelines, the Minister said, now than ever before, Government is committed to ensuring alternative source of fuel on sustainable level is provided to fire the power plants.
As a pioneer in coal to power, the Minister commended Zuma Energy’s consistence in the pursuance of the coal project, while assuring that government on its part will put in place a suitable framework for the Power Purchase Agreement (PPA) as well as a Partial Risk Guarantee (PRG) to ensure that, off-takers buy all the power generated from the company’s plant.
The Minister, who expressed optimism that the coal-power project would be a success, also disclosed that the African Development Bank (AfBD) had already indicated interest with regard to the provision of Partial Risk Guarantee (PRG) for coal to power project in the country.
Earlier, the Chairman of Zuma Energy, Dr. Innocent Ezuma had stated that the Company looks forward to a joint collaboration with the Government for coal-power development with the hope of ensuring energy security for the country.
He briefed the Minister on the project structure, this he said was in three phases of exploration, mining and power development stages.
Thereafter Dr. Ezuma presented a proposal to the Minister on Public Private Partnership (PPP) between the Zuma Energy and the Federal Ministry of Power.
For: Deputy Director (Press)