The Nigeria Electricity Regulatory Commission (NERC) yesterday issued an Embedded Generation Licence to the Bauchi State government to establish its 35megawatts (mw) Yankari Power Company.
While presenting the Licence to the state Governor, the NERC’s Chairman, Dr. Sam Amadi said, “For this project, we are satisfied with the technical, commercial, environmental issues, and having gone
through due process, the Commission gladly issued a licence authorising the state government to do that power and also serve its citizens.”
Amadi advised that the project should be emulated and executed as a model by other state governments and stakeholders to improve access to power.
Yankari Power is an expected 35mw embedded gas-fired Independent Power Plant (IPP) located in Gudun Industrial Layout of Bauchi in Bauchi state. Its licence process was initiated in March 2012 following the submission of a Licence Application.
NERC Commissioner, Legal, Licensing and Enforcement (LL&E), Dr Steve Andzenge said the company complied with the requirements stipulated in the NERC Regulations for Application for Licence, hence the Commission granted it the ‘Embedded Electricity Generation Licence.’
The Bauchi State Governor, Isah Yuguda in his remarks said the project would cost $200 million (N32,970 billion) to generate the planned 120mw within 18 months adding that, “I am happy today that we are the first State to get a licence to generate power.” He said, “We want to assure you that given the agreement that were signed with those who will construct the plant, that initially they have given us 18 months for the delivery of up to 120mw.”
“We believe in the first three months from the day of their clearing of site, we will deliver the 35mw; and given that, we have signed an MOU with Jos Electricity Distribution Company (JEDC), once we have
sufficient power, then we can sell the balance to other states and consumers.”
He noted that having considered the attendant gas supply constraints being experienced in power generation, Yankari Power is designed to use gas, crude oil and Low Pour Fuel Oil (LPFO) as options.
According to him, the project’s funding is included in the $1.6billion China EXIM Bank soft loan, payable within 25 years; counterpart funding from the Federal Government’s Electricity Intervention Fund from the Bank of Industry (BOI) and equity contributions from the state government.