THE Nigerian Bulk Electricity Trading Company Plc (NBET) has disclosed that all parties in the power sector business would be embracing automated trading platform for their energy transactions in 2023.
The parties comprise the generation, transmission and distribution companies, as well as gas suppliers and consumers.
NBET, the coordinating agency, said in Lagos on Wednesday, November 30 at a capacity building training for journalists that 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.
The Managing Director, NBET, Nnaemeka Ewelukwa, presenting a paper titled, ‘Actualising Enhanced Electricity Supply and Commercial/Industrial Decarbonisation in Nigeria’, stated that the platform would also serve as a spot market for real-time energy trading as the market develops.
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, and energy locations, including solar irradiation, wind and mini-hydro potentials.”
Ewelukwa said the interactive map would facilitate transaction structuring by willing buyers and sellers.
The policy initiative, he added, would boost network investment coordination and 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.
“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,” he explained.
The NBET chief, when prodded by The ICIR on the timeline set for the project, disclosed that the Securities and Exchange Commission, Nigerian Electricity Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority were currently being engaged, with the timeline yet to be finalised.
He further noted that the federal ministries of Power; Finance, Budget and National Planning; and Industry, Trade and Investment, as well as the media and civil society organisations were also being engaged.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.