NIGERIA is seeking to tap into the success of Turkey’s electricity market by signing a partnership agreement with a Turkish energy firm, Energy Exchange Instabul, (EXIST) towards enhancing energy mix and marketing.
To seal the deal, a Memorandum of Undersigned has been signed by the Nigerian Bulk Electricity Trading Plc. and EXIST to boost cooperation and knowledge exchange between the two countries.
The agreement, the Ministry of Finance disclosed in a statement it issued on Sunday, August 28, 2022, was signed between the two parties at the EXIST campus in Maslak, Turkey.
The deal was designed to explore mutually beneficial opportunities for growth between both agencies.
The statement, signed by Yunusa Tanko Abdullahi, a Special Assistant to the Minister of Finance, Zainab Ahmed, explained that the deal was designed to explore mutually beneficial opportunities for growth between the two agencies.
The signing ceremony was witnessed by Ahmed; the chairman of NBET Board of Directors, Zainab Shamsuna Ahmed; and the NBET chief executive officer, Nnaemeka Ewelukwa, all on behalf of NBET, while the EXIST chief executive officer, Ahmet Türkoğlu, signed on behalf of the Turkish agency.
Ahmed told the Turkish agency’s officials at the event, “EXIST has reached an admirable stage. We also want to establish electricity markets by providing the necessary transformation in our country. We want to cooperate with you on this journey by walking hand-in-hand with you.”
Ewelukwa expressed optimism that the cooperation agreement with EXIST would go a long way in re-positioning NBET for enhanced performance in the Nigerian electricity market and consolidating on its accomplishments.
He said, “The key aspects of the cooperation would see NBET strategically leveraging on cutting edge technology to chart a new course in its commercial transactions in the electricity market.
“It will ultimately pave the way for more power investments in the country and deepen competition in the market, with greater value delivery to participants in the market.”
NBET, he added, would also synergise with EXIST in developing a framework for upscaling sustainable investments in renewable energy in line with the federal government’s commitment to diversify the country’s energy mix, and transition to a low-carbon economy.
The agreement covers the transfer of experience and business knowledge, and the design of a functional trading structure for the Nigerian electricity supply industry (NESI).
Turkey has a large and growing manufacturing base that benefits from its increasing volume of power generation.
The annual growth rate in additional power generation capacity in the country has been around five per cent due to increasing economic activities and a rising population in Turkey.
The Nigerian electricity supply industry hopes to leverage on the EXIST experience towards the design and implementation of policy frameworks that will ramp up energy solution to the Nigerian manufacturing sector and other vital economic areas towards increasing the country’s gross domestic product and improving the living conditions of its people.
The two parties have agreed to establish a partnership to support the optimization of NBET’s current energy portfolio and identify sustainable means to scale up energy generation and supply in Nigeria.
They also agreed to ensure knowledge development and share cross-visits to learn from each other’s experiences. Both parties have committed themselves to further research and development in relevant areas that are beneficial for enhancing the energy sector in Nigeria.
In addition, EXIST shall also assist NBET in the design and implementation strategy and plan that would enable optimal bulk electricity trading that adopts a least cost trading model for energy efficiency.
In fulfilling the conditions, EXIST shall assist NBET in understudying the Turkish experience and energy transition to adapt successfully to the Nigerian context. NBET currently manages a portfolio of over 13,000 megawatts of electricity.
Turkey has a generation capacity of 100 gigabyte, translating to 100,000 megawatts. The country is Europe’s sixth largest electricity market and the 14th in the world.
Approximately, 54 per cent of Turkey’s electric power generation capacity comes from renewable energy, including hydroelectric, wind, solar, geothermal and biomass power plants, making the country the fifth biggest generator of renewable energy in Europe.
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.