Home News Oyo Govt Begins Construction Of N8.27bn Independent Power Supply

Oyo Govt Begins Construction Of N8.27bn Independent Power Supply

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The Oyo State Governor, Mr. Seyi Makinde, has performed the groundbreaking for the construction of 11 megawatts Hybrid Power Solution in a bid to address the unstable power supply in the state.

Makinde, who performed the ceremony within the state Secretariat Complex in Ibadan, said that the project would be executed by Elektron Energy within six to eight months at the cost of N8.27 billion.

According to him, the contractor will build, execute and transfer the project. Thereafter, the state government will repay the capital expenditure investment of the Elektron Energy over a period of 10 years.

“And within this period, the energy company will operate and manage the infrastructure,” the governor said.

Makinde described the project as a right step taken by his administration to address the problem of electricity.

He said that Nigeria had been unable “to generate and distribute enough energy to provide power 24/7 to its citizens.

“Overtime, capable individuals have purchased different sizes of diesel/petrol generators or invested in solar energy as alternative sources of power,” he said.

On issues relating to power distribution in the country, the governor explained that some people believed that only the Federal Government has the power to distribute energy.

“So, any power generated at the state or local levels must be fed to the national greed before it can be distributed, this is partly true.

“Under the Electricity Power Sector Reform Acts, 2005, independent power distribution is allowed, regarding distribution licences.

“Section 67 :1 states, ‘subject to such terms and conditions, as the commission may fix, a distribution licence will authorise the licencee to construct, operate and maintain a distribution system and facilities,” he said.

The governor said it was on the basis of this Acts that his government had entered into a contract with Elektron Energy to finance and develop the 11 megawatts Hybrid Power Solution for the state government.

Makinde added that Elektron Energy would use Ibadan Hybrid Power Limited, (Hypower) as the special purpose vehicle to execute the contract.

He hinted that the Hypower would be responsible for managing the distribution infrastructure through Ibadan Hybrid Distribution Limited “which will hold an independent electricity distribution network.”

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