by The Federal Government intends to construct renewable power plants to enhance electricity generation nationwide.
Minister for Power, Adebayo Adelabu, revealed this during a meeting with foreign agencies on Thursday. According to a statement from his media aide, Bolaji Tunji, the minister emphasized that establishing renewable power plants is part of his strategy to achieve incremental improvements in the country’s power supply.
Renewable power plants generate electricity from sources like solar, wind, water, or geothermal energy, without relying on fossil fuels such as coal, oil, or natural gas.
Adelabu pledged to ensure that the Rural Electrification Agency prioritizes serving rural communities that are underserved and unserved, which may not be commercially viable for distribution companies.
Tunji further explained that the minister is focused on increasing the national capacity for renewable energy, particularly by developing small hydropower plants along the 26 small dams in the country. These plants could be hybridized with solar power during periods of low water levels. Solar energy options are also being explored for the northern region, with considerations for windmill installations offshore along the coastal areas.
Addressing challenges in the power sector, Adelabu highlighted liquidity and funding issues. He emphasized the need for a commercial model where costs related to power generation, transmission, and distribution are recovered through tariffs, allowing operators to earn a reasonable profit margin. However, he noted that the sector faces liquidity challenges due to delayed government subsidies, leading to inadequate investment and deteriorating infrastructure.
Adelabu stressed the urgency of resolving the liquidity problem to facilitate investment and improve the sector’s operational efficiency.
