Gas, Power, Others to Transact Via Trading Platforms in 2023 – FG
The Federal Government has announced that power generation, distribution and transmission companies, gas suppliers, consumers, among others, will conduct electricity transactions through an automated energy trading platform in 2023.
The government said the platform would facilitate an automated and transparent marketplace and would serve as a system for the consummation of bilateral contracts for energy using standard template contracts.
Managing Director, Nigerian Bulk Electricity Trading Plc, Nnaemeka Ewelukwa, disclosed this in a presentation titled, ‘Actualising Enhanced Electricity Supply and Commercial/Industrial Decarbonisation in Nigeria’ in Abuja.
In the document obtained by Economic Confidential, Ewelukwa stated that the platform would also serve as a spot market for real-time energy trading as the market developed further.
He said, “IPPs (Independent Power Plants) wishing to sell power can register on the platform and immediately have access to a comprehensive database of commercial/industrial customers across the country, and their energy requirements.
“A comprehensive interactive map will be developed, showing the geo-locations of the following facilities within Nigeria and the ECOWAS region (existing, on-going and proposed).
“The entities include commercial and industrial customers and industrial clusters; generation plants; transmission and distribution network; gas pipeline network; energy locations, including solar irradiation, wind and mini-hydro potentials.”
Ewelukwa said the interactive map would facilitate transaction structuring by willing buyers and sellers.
It would also boost network investment coordination, guide investment decision-making, while facilitating greater policy planning and efficient resource planning.
“It will ensure the efficient linking of sufficient numbers of buyers and sellers, thus facilitating price discovery,” he said.
He added, “With price discovery, energy buyers and sellers have the assurance that they are purchasing these commodities at fair prices in a reliable marketplace.
“Ultimately, it will enhance overall visibility of tariffs, capacity availability, costs and prices along the energy value chain, which will aid buyers and sellers in undertaking transactions.”
Ewelukwa said the Securities and Exchange Commission, Nigerian Electricity Regulatory Commission as well as the Nigerian Midstream and Downstream Petroleum Regulatory Authority were being engaged by NBET on the new initiative.
He further noted that the Federal Ministries of Power; Finance, Budget and National Planning; Industry, Trade and Investment; as well as the media and CSOs were being engaged.
On industry groups that the NBET was interfacing with, Ewelukwa outlined them to include: the Manufacturers Association of Nigeria (3064 members); Nigeria Employers Consultative Association (332 members); Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (64 member chambers; 401 corporate members); Nigeria Association of Small Scale Industrialists; and Nigeria Association of Small and Medium Enterprises.