Venezuela has approved a reform that opens the electricity sector to private and foreign investment. At the same time, Nigeria plans to invest around $2 billion in a new transmission network designed to increase the capacity of the national power system to at least 19,000 megawatts.
Venezuela allows private operators
Venezuela’s National Assembly unanimously approved the reform of the Organic Law on the Electricity System and Service. The vote took place on November 10, following three postponements of the final consideration.
The amendments provide for electricity generation to be carried out by the state operator, mixed-ownership companies and private companies with the necessary authorization. Private operators will be able to receive concessions for up to 25 years.
The reform is aimed at attracting capital to a sector that has suffered from insufficient investment, technical problems and prolonged power outages for years. According to EFE, the law is part of a broader policy to open strategic industries to private capital.
“The activity of generating electricity will be carried out by the state operating company, as well as by mixed-ownership and private companies that have the necessary authorization,” the wording in the new law reads, as quoted by Reuters.
Nigeria plans East-West Super Grid
Nigeria’s federal government plans to invest around $2 billion in a new power transmission network known as the East-West Super Grid. The project will complement the existing national grid rather than replace it.
According to NAN, the facility is expected to link major transmission corridors through Funtua, Gwagwalada, Ikot-Ekpene, Benin, Epe and Ilorin. The procurement procedures are expected to continue after the project received approval from President Bola Tinubu.
“The East-West grid will cost around $2 billion and will have a capacity of at least 19,000 megawatts,” Energy Minister Joseph Tegbe said. According to him, construction could be completed within 18 to 24 months.
Tegbe said the grid’s current transmission capacity is around 4,000 megawatts. The government expects the new infrastructure to reduce constraints on transmitting generated electricity between power plants and major load centers.
The grid remains dependent on other weaknesses
The project alone will not guarantee more electricity for households and businesses. The actual result will also depend on generation, gas supplies, the condition of the distribution network and the sector’s financial position.
The Nigerian government has paid 1.23 trillion naira of its debts to power generators, which amount to around 3.3 trillion naira. Tegbe said the remaining approximately 2 trillion naira should be settled in 2027.
Alongside preparations for the new network, the authorities are restoring existing facilities. Following repairs to the Benin–Egbin line, power supplied to Lagos’s electricity system exceeded 1,000 megawatts. The restoration of the Oshogbo–Ikeja West line could add another 400 megawatts.
The minister said a stable power supply in Nigeria could be achieved within three to five years.
Sources: efe.com, es.finance.yahoo.com, nairametrics.com