THE NIGERIAN ELECTRICITY SUPPLY INDUSTRY: STATUS, CHALLENGES AND SOME WAYS FORWARD. Engr. (Dr) Moses Amadasun MNSE, MIEEE

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1 THE NIGERIAN ELECTRICITY SUPPLY INDUSTRY: STATUS, CHALLENGES AND SOME WAYS FORWARD Engr. (Dr) Moses Amadasun MNSE, MIEEE Abstract: The present capacity of the Nigerian Electricity Supply Industry to provide needed power for the economic development of the country is far short of requirement. All facets of the electricity value chain (Generation, Transmission and Distribution) as well as the associated fuel supply systems require urgent and serious amelioration of the situation. The currently available infrastructure and capacity in the area of Generation, Transmission and Distribution are discussed. Some of the major challenges in these areas are highlighted. Issues such ageing and dilapidated generation infrastructure, expensive and inefficient self-help generation, high technical losses and the near absence of redundancy/alternative wheeling routes in the transmission network, while in the area of distribution, the very high commercial losses, unplanned and ill-maintained networks, overloaded transformers and the issue of cost reflective consumer tariff are mentioned. Some suggestions are made at the end towards improving the situation. These include incentivizing those in the private sector to facilitate their participation; encourage captive and embedded power generation, as well as optimize usage of the available gas supply through conversion of some power plants to more efficient generation technology, and the establishment of gas storage facilities to provide buffer in cases of temporary unavailability of gas supply. In the area of Transmission, efforts need to be intensified in establishing ring networks in order to provide alternative wheeling paths, maximize the use of the available rights-of-way through the dualization of present single circuits and use of conductors with higher current-carrying capacity, and also making the network more intelligent through the installation of early warning and automatic fault detection and location systems. While in Distribution, the use of pre-paid meters and group metering are canvassed to minimize commercial losses. Consumer education with respect to connection to electricity supply is highlighted. Also mentioned are the incidence of circuit bridging and its attendant consequences, and the necessity to have cost reflective consumer tariff to underpin the needed investment for improvement and development of new capacities by the private sector. 1

2 1. Introduction It is generally acknowledged that the present epileptic state of the electrical power supply situation in the country is one of the major causes (and perhaps the most important cause) of the economic underdevelopment of the country. It is the bane of the manufacturing industry in particular, and a major factor in the increased cost of doing business in all other sectors of the Nigerian economy. All facets of the electricity value chain: Generation (including the fuel supply); Transmission and Distribution require urgent revamping of the existing facilities and huge investment in development of new infrastructure to increase capacity of the electricity supply industry to meet the power needs of the Nigerian economy. In the area of Generation, there are ageing and dilapidated infrastructure of PHCN, while expensive and inefficient self help generation are common place, from the big LPFO/diesel powered generators used by industries down to the very small petrol powered 1.5KVA generator sets used by the common man. High technical losses as well as the near absence of redundancy and/or alternative wheeling routes in the transmission grid constitutes a major problem as regards to total wheeling of the presently available generation. In distribution, there are the problems of high commercial losses, unplanned and ill-maintained networks, over loaded transformers in many places, and issue of cost reflective consumers tariff which is a very important and fundamental issue for the whole industry, as the revenue generated by the Distribution companies is what sustains the entire value chain. However, the situation can be improved upon by optimizing and maximizing the use of the currently available electricity infrastructure, while efforts are intensified in the development of new capacities. In Generation for instance, captive and embedded power generation should be encouraged to reduce pressure on the Grid infrastructure, optimize usage of the available gas supply to the gas-fired thermal plants through conversion to more efficient generation technology. Establishment of gas storage facilities (particularly for the big plants) is required to provide buffer supply during temporary unavailability of gas supply, while for the longer term, effort should be made to enhance the power generation mix of the country through the deployment of the fast evolving renewable technologies: solar, wind, tidal and biomass. 2

3 In transmission, efforts need to be intensified in the establishment of ring networks or loops in the network in order to provide alternative wheeling paths in the case of failure. Maximum use of the available Wayleaves or Rights-of-Way (ROW) through the dualization of present single circuit lines still existing in the grid, as well as replacement of conductors with those having higher current-carrying capacities should be embarked upon. Making the transmission network more intelligent through the installation of early warning and automatic fault detection and location systems will also help to improve the situation. In the area of Distribution, the deployment of pre-paid meters as well as group metering should be encouraged and intensified to reduce commercial losses. The use of concrete poles instead of wooden poles in the distribution networks should be the way forward to reduce the incidence of broken/collapsed poles that causes circuit bridging and its attendant consequences on feeder pillars and distribution transformers. A well developed and sustained consumer education is necessary with respect to connection to electricity supply, the rights and obligations of the consumer, and so on. Finally, the issue of cost reflective consumer tariff to underpin the needed investment for revamping the existing facilities, and development of new capacities and generally sustain the whole electricity value chain is an absolute necessity. A tariff that is reasonable for the consumer and at the same time guarantees recovery of investment cost and reasonable returns on investment for the private sector will go a long way to attracting the needed participation by the private sector 2. Current Situation of the Nigerian Electricity Supply Industry 2.1 Generation Using recent figures from Federal Ministry of Power (FMoP) and the Nigerian Electricity Regulatory Commission (NERC, the installed generation capacity in the country as at March 2012 was 6643MW, (Hydro Stations 1900MW, and Thermal Plants 4743MW); while the actual available power output was 2653MW: from the hydro stations - 522MW and from the thermal plants MW. The breakdown per power plant is given in Table 1 below. 3

4 POWER PLANT FGN Owned Plants (PHCN+NIPP) HYDRO: Jebba Kainji Shiroro THERMAL: Egbin Afam IV & V Delta (Ughelli) Geregu Omotosho Olorunshogo State Govt IPPs: AES (LASG) Ibom Power (AKSG) Omoku-1 (RVSG) Trans-Amadi (RVSG) New Afam I & II (RVSG) IPPs of the Oil & Gas Industry: Okpai (NAOC) Afam VI (SPDC) INSTALLED CAPACITY as at March 2012 (MW) AVAILABLE CAPACITY as at March 2012 (MW) TOTAL: Table 1: Installed Generation Capacity and Available Capacity in Nigeria as at March 2012 The projected available generation capacity requirement of the country this year, going by data in the Power Sector Road Map Document of 2010 is 11,879MW. As the Table clearly shows, the total available capacity is far short of the country s requirement. For many of the plants, there is a huge difference between the installed capacity and the available capacity for a number of different reasons. 4

5 In the absence of adequate electricity supply from the grid, self help generation has become the norm rather than the exception. All manner of generating sets abound in the country, from the huge LPFO/diesel-powered generators used by the big industrial and commercial firms to the very small petrol powered 1.5 KVA sets popularly called I better pass my neighbour. Self-help generations are not only inefficient, but are also very expensive. According to the Power Sector Road Map Document of 2010, and I quote Self-generation of electricity (from diesel and petrol generators) in 2009 was conservatively estimated at a minimum of 6,000 MW i.e. more than twice the average output from the grid during that year. Manufacturers pay in excess of N60/kWh on diesel or LPFO generation; everyone else pays around N50-70/kWh on self-generation (diesel or petrol), while the very poor without connection at all to electricity pay more than N80/kWh burning candles and kerosene. The result is that Nigerians as a whole spend between 5 and 10 times as much on self- generated light and power as they do on gridgenerated electricity. Putting it in context, the per capital grid-connected electricity consumption in Nigeria is one of the very lowest in the world, currently about 3,000MW for a population of 160 Million (compare this with Brazil which generates 100,000MW for a population of 201 million, and South Africa with available capacity of 40,000MW for a population of 50 Million). 2.2 Transmission The national transmission grid currently operates at 132KV and 330 kv, with an on-going proposal for the construction of specific transmission infrastructure to operate at 760KV (the so-called Super Grid ) for the transportation of Power to the major load centres in the country. The major load centres that one can idenfify in the country are Lagos State, Ibadan, the Aba-Port Harcourt Axis, the Benin-Warri Axis, the Enugu-Onitsha Axis, Abuja Kaduna Axis, and Kano. In the Power Road Map Document, the power wheeling capacity of the entire Grid projected for this year in order to ensure the evacuation of projected generation is 16,852MW (7886MW for the 330KV Lines, and 8986MW for the 132KV Lines). However, just as in the case of generation, the transmission capacity realization at the end of the year will be far short of this projection, though there is ongoing effort (particularly within the frame work of the NIPP programme) to strengthen the Grid with the expansion of the major/strategic substations; replacement of ageing substation transformers (150MVA s are being installed in substations in 5

6 Lagos and Kano for instance), as well as the construction of new 330KV and 132 KV lines (the on-going construction of the 3 rd Benin Onitsha 330 KV line is one such example). The Transmission Grid is centrally controlled from the National Control Centre (NCC) located at Oshogbo in Osun State, while there is a Back-up or Supplementary National Control Centre (SNCC) at Shiroro in Niger State. In addition to these two centres are three Regional Control Centres (RCCs) located at the following substations: Ikeja West (RCC1), Benin (RCC2), and Shiroro (RCC3) Fig. 1(a) shows the 330KV Grid system as at end 2011, while the expectation on completion of all the ongoing PHCN and NIPP projects is shown in Fig. 1 (b (Source: TCN s Presentation) Fig. 1(a): Existing 330KV TCN Grid 6

7 Fig. 1(b): Expected 330KV TCN Grid after completion of all ongoing projects At this time, the National Grid Network will have a total length of about 9500Km for the 330KV Lines and 9700Km for the 132KV Lines. 2.3 Distribution There are eleven Distribution Companies (DISCOs) in the country. They were created within the framework of the unbundling of the then National Electric Power Authority (NEPA) following the Electric Power Sector Reform Act (EPSRA) in March of In Table 2 are shown the eleven DISCOs with States/areas they cover, while Fig. 2 shows a map of their coverage. (Source: FMoP s Presentation) In the Power Road Map plan, the projected total distribution capacity of the DISCOs by the end of 2012 is supposed to be 8,061MW. But with the generation of less than 3,000MW at the end of March, it is clear that total distribution at the end of the year will be a far cry from the projected capacity. Name of Distribution Company States/Areas of States Covered 7

8 Abuja Distribution Company PLC Benin Distribution Company PLC Eko Distribution Company PLC Enugu Distribution Company PLC Ibadan Distribution Company PLC Ikeja Distribution Company PLC FCT, Kogi, Nassarawa & Niger Edo, Delta, Ondo and Ekiti Lagos State (Island, VI, Lekki to Epe) Abia, Anambra,Ebonyi, Enugu & Imo Kwara, Ogun, Osun & Oyo Lagos State (All of Mainland, Ikeja to Badagry) Jos Distribution Company PLC Bauchi, Benue, Gombe, Kogi & Plateau, Kaduna Distribution Company PLC Kaduna, Kebbi, Niger, Sokoto & Zamfara Kano Distribution Company PLC Port Harcourt Distribution Company PLC Yola Distribution Company PLC Table 2: DISCOs and the States/Areas covered Jigawa, Kano & katsina Akwa Ibom, Bayelsa, Cross River & Rivers Adamawa, Borno, Taraba & Yobe Fig. 2: Map Showing the Geographical Coverage of each DISCO 3. Challenges of the Nigerian Electricity Supply Industry 8

9 3.1 Challenges in Generation The available generation capacity is far short of what is required. Many of the PHCN s power plants are old and some even have dilapidated generating units due to lack of proper maintenance. For instance, in Kainji Hydro Power Plant, the information is that, two to three generating units have not been in operational state for a long time, while in Afam thermal power station all the generating units in the old Afam I-IV plants have been dead for a long time and are now more or less scraps. The long period between the mid 1980 s and the beginning of this decade during which there was virtually no investment in the construction of new power plants contributed in no small measure to this lack of generation capacity. Another major challenge is the problem of inadequate gas supply to the thermal stations, particularly to those in the western axis of the country. The domestic gas supply infrastructure is very limited and also quite often subject to vandalization. For a long time, there has been the reluctance of the Oil & Gas industry to invest in the construction of a gas supply network (call it a Gas Grid) as the gas price in domestic market made investment in that sector unattractive. It is only in the last 2 or 3 years that serious effort has been made by Government towards having a cost reflective gas tariff in the domestic market. For the Hydro Plants, the problem of proper management of water resources at the dams remains a challenge. Other important challenges for generation are grid-related; one is the instability of the grid that causes tripping of generating units, which in turn results in higher frequency of maintenance due to induced Equivalent Operating Hours (EOH). The other is constrained generation, as the available capacity cannot be fully utilized due to the in ability of the Grid to absorb the full capacity. In Afams VI for example, out of the 650MW available capacity, only a maximum of 480MW have ever been evacuated. 3.2 Challenges in Transmission As in the case of generation, the Grid transmission capacity is also short of requirement. Ageing transformers/equipment abounds in many substations. 9

10 There are high technical losses due to ageing equipment, and also due to long distances between the generating stations and the major load centres. The longer the distance, the higher are the losses on the line. Currently, there is also the inability to ensure the continued delivery of power in case of problems in a link between two substations. For now, the Grid network largely consists of radial or single circuit connections, with very little or no redundancy and lack of alternative power wheeling route in case of link failure. The issue of Wayleaves or Rights- of-way (ROW) acquisition for the construction of new transmission lines is also a major problem faced by the industry. Many transmission line projects of PHCN and NIPP have taken much longer to be completed or still not completed because of the issue of ROW. Cases abound of work stoppages by EPC Contractors due to actions by communities. 3.3 Challenges in Distribution One of the major challenges in the area of Distribution is the issue of very high commercial loses. Some studies have put these losses as high as 30 to 40% for some of the DISCOS. Various reasons have been given for this problem; power theft due to bypassing of meters/out-right illegal connection, reluctance of consumers to pay bills based on estimated consumption, sharp practices by some meter readers, and so on. Another problem is that of unplanned and ill-maintained network. In many places, the connection from the distribution poles to consumers follows no rules or logic, with wire meshes all over the famed spaghetti connections. The issue of overloaded injection and distribution transformers is another challenge in distribution. This is coupled with exposed and unprotected distribution and feeder pillars that lead to easy theft of earth cables and vandalization of these facilities. Another major issue and perhaps the most important one for distribution is that of cost reflective consumer tariff. The present average consumer tariff is about N11/KWh i.e. roughly, 6.4 US cents/kwh, at N155 to $1. This translates to $64/MWh. This level of tariff is not all cost reflective, bearing in mind that this is what goes to paying the cost of generation and transmission in addition to the cost of distribution. 10

11 A comparative analysis of available data in international Power/Energy Journals (taking into consideration current EPC prices indicate an average cost in generation of around $70/MWh in sub saharan Africa. In the electricity industry, the general standard is that the generation part (inclusive of fuel) of the Electricity value chain is responsible for about 45% of the consumer tariff, with corresponding percentages for transmission and distribution being 25% and 30% respectively. Therefore, working on the basis of 45% and $70/MWh for Generation, the tariff for Transmission will be about $39/MWh (corresponding to 25%) and $47/MWh (corresponding to 30%) for Distribution. This implies that the average cost of generating, transmitting and distributing 1MWh of electrical energy to the consumer is about $156 or N24,000 (at $1 = N155). This translates to a tariff of about N24/KWh for the consumer. While this price is still far less than the cost associated with self-help generation as already mentioned above, it remains to be seen whether or not the consumer (i.e. the Nigerian public) will accept this level of tariff with the current electricity supply situation. On the other hand, without increase in consumer tariff, there will be reluctance by the private sector to bring in the needed investment in order to repair/upgrade existing infrastructure and build new facilities, so the chicken and the egg situation arises, which one comes first!! 3.4 Challenges cutting across the whole Industry One of the problems cutting across the entire value chain of the industry is how to get the needed investment towards improving the situation. Huge capital investment is required to revamp existing facilities and to build new ones to bring the capacity of the industry to meet the country s power needs. Again, according to Road Map Document, To reach the target of 40,000 MW in 2020 will require investments in power generating capacity alone of at least USD$ 3.5 billion per annum for the next 10 years. Correspondingly large investments will also have to be made in the other parts of the supply chain (i.e. the fuel-to-power infrastructure and the power transmission and distribution networks). That is, a total of USD$10 billion per annum would represent a conservative estimate of the sums that will need to be spent on the whole supply chain over the next 10 years in order to reach the modest target of 40,000 MW by

12 Inadequate human capital is also an issue of concern for the industry, more so in the areas of generation and transmission. The problem will even become more acute as new facilities are built and brought into operation. As stated in the Road Map Document, investments in human capital development in the sector have been inadequate and as there has been no significant investment in focused training in the last 15 years, while many of the people trained earlier have retired and/or nearing retirement. But, a well-trained and properly motivated workforce is an absolute necessity to achieving the desired goal of providing Nigerians with adequate and reliable electricity supply. Lastly, but also very important is the lack or limited availability of local (incountry) manufacturing of equipment, materials and spare parts. Almost everything has to be imported with its attendant delays in repair and consequently long downtime of machines/equipment, aside from the high cost associated with importation. For instance a major overhaul of gas turbine system involving refurbishing of turbine blades in a local facility will take at least 2 to 4 months off the repair time compared to a situation where such a turbine system has to be shipped abroad for such repairs. 4. Going Forward 4.1 In Generation (a) In the short term (2 to 3 years), the private sector has to be incentivized in order to bring in the much needed investment to quickly put up new generation capacities by way of IPPs. In this regard, the participation of the Oil and Gas industry must be particularly solicited and encouraged. This is the industry that has strong expertise in handling huge energy projects, as well as sound maintenance regime for their facilities. An added advantage of this group is that the current big problem of gas supply to plants will be taken almost for granted. (b) In the medium to long term (4 years and beyond), the use of the available gas supply has to be optimized through the conversion of existing Boiler- Type Technology and Open Cycle Gas turbine (OCGT) plants to Combined Cycle gas Turbine (CCGT). This will ensure the generation of higher amount of power for the same volume of gas that is currently supplied. For 12

13 example, with CCGT, the current installed capacities of Egbin(1320 MW) and Sapele (1020MW) can be increased to about 1800MW and 1500MW respectively, assuming an efficiency of 45% to 47% for CCGT, and 30% to 32% for Boiler-Type and OCGT plants. Thus, for the two plants with CCGT, an additional 900MW of power can be produced. The reduced gas (CO 2 & NOx) emission from a CCGT plant compared to an OCGT for the same amount of power generated is also an additional impetus for conversion, considering the ongoing debate of climate change. (c) Encouragement should be given to captive and embedded generations. There could be captive generation for Industrial Estates/Parks, as well as for big residential estates. This will reduce pressure on supply from the Grid. (d) For the thermal plants (particularly the big ones such as Egbin and Sapele), effort should be made at building gas storage facilities that will provide buffer supply to the plant during periods of gas unavailability from the gas supplier due to one reason or the other. (e) On the longer term, increasing the power generation mix of the country will be desirable. Generation from coal, as well as the renewable (solar, wind, tidal and biomass) should be encouraged with appropriate incentives for investors. Small Solar Power Plants (5 to 20MW) as embedded or captive generation would help to ensure electricity supply for rural communities, particularly in the Northern part of the country bordering the Sahel. The same goes for wind power in this region and in the coastal areas of the country where sufficient wind force are available most of the time. Generation from tidal waves in the coastal areas bordering the sea, and generation from the hundreds of metric tons of waste generated in the cities are other possibilities. 4.2 In Transmission: (a) The current programme of establishing loops in the Grid network should be intensified in order to have alternative wheeling paths in the case of link failures. 13

14 (b) In view of the current difficulties with wayleaves, a programme to maximize the use of the currently available wayleaves has to be embarked upon through the conversion of the still existing Single circuit 132 KV and 330 KV lines to Double Circuits lines. Also, the replacement of line conductors with those with higher current-carrying capacities needs to be explored. All these will go to increasing the transmission capacity of the Grid using the existing ROW. (c) The Grid network may need to be made more intelligent through the installation of early warning and fault detection and location systems. Early warnings will facilitate preventive interventions/maintenance while fault detection and location will increase efficiency of interventions and reduce downtimes. 4.3 In Distribution (a) Billing and collection mechanism requires serious overhaul. Deployment of pre-paid meters should be intensified, while the approach of group metering should be explored where possible. For instance, group metering should be possible for residential estates. (b) Replacement of wooden poles by concrete poles has to be carried out to reduce the incidence of circuit bridging due to broken/collapsed electric poles. Bridging is one of the major causes of burnt-out feeder pillars and explosion of distribution transformers. (c) There should be the strengthening and expansion of the MV (11KV and 33KV) networks through the installation of 15 MVA and 7.5 MVA injection substations at strategic locations within cities after load studies. In this regard, a collaboration of the DISCOs with the States Town Planning Authorities will be required (new areas of development: Industrial, Commercial and residential) And for the industry as a whole, the following are points for consideration going forward: (a) Consumer tariff must be such as to make the whole electricity value chain self sustaining. Considering the huge investments that will be required and which only the private sector can provide, a cost reflective tariff for the 14

15 industry is an absolute necessity. Without a cost reflective tariff, the private sector will be reluctant to invest in the electricity sector. (b) A well defined and sustained programme of consumer education with respect to electricity connections and usage is necessary and desirable. The consumer needs to be informed of the on-going reforms in the power sector. He needs to be enlightened as regards his rights as well as obligations. (c) A regime of Long Term Service Agreement (LTSA) for major equipment with the OEMs needs to be established from the onset, as part of the maintenance strategy for facilities/equipment. This will ensure the continued availability of spare parts as well as maintenance support over a long duration of time. The situation whereby an equipment of only few years in operation become obsolete/unserviceable due to lack of spare parts for maintenance should no longer continue. (d) Local manufacturing of equipment, material and parts, as well as the establishment in-country of major repair centres by OEMs should be encouraged and the relevant companies incentivized in this regard. 5. Conclusion There is general acknowledgement that the epileptic state of the Nigerian Electricity Supply Industry is a major contributory factor in the high cost of doing business in Nigeria, and constitutes a serious clog in the wheel of the economic progress of the country. Available capacities in all aspects of the industry; from fuel supply, to power generations through transmission and then distribution are far short of the country s requirement. They all need serious revamping of existing facilities and more importantly the development and installation of new capacities. Ageing and dilapidated generating units and the near zero investment in building power plants over a period of nearly two decades had contributed to a huge short fall in generation capacity. High technical losses and the lack of redundancy and availability of alternative transmission paths remain the bane of the Transmission Grid. In the area of distribution, there exists the issue of very high commercial losses (as a result of power theft due to illegal connections/other sharp practices), unplanned and ill-maintained network, exposed and unprotected distribution 15

16 transformers and feeder pillars, and the all important issue of cost reflective consumer tariff. The lack of electricity supply to industries, commercial concerns and households results in high abundance of inefficient and expensive self-help generation using LPFO/diesel, and petrol-fuelled generations. With a view towards improving the situation, some suggestions have been made. (i) (ii) (iii) (iv) (v) (vi) In the area of generation, the private sector will need to be incentivized to build IPPs, and in particular the oil and gas industry, taking into consideration their expertise in big energy projects and their in-house capability to supply gas supply to such IPPs established by them. Also canvassed is the upgrading of existing thermal power plants to CCGT to increase production with the same volume of gas supplied. The need to establish gas storage facilities to provide buffer during temporary unavailability of gas from the gas supplier, as well as the encouragement of captive and embedded generation are the other points mentioned towards improvement. For Transmission, the current effort at establishing loops in the network should be intensified to increase redundancy/provide alternative wheeling paths. Also, considering the current problems of wayleaves in different paths of the country, some proposals are put forwards towards increasing the transmission capacity of the Grid using the currently available wayleaves. This would include dualizing the current 132KV and 330KV Single circuit lines existing on the Grid, as well as using conductors with high current-carrying capacities. The installation of more early warning and fault detection/location systems in the Transmission network is advised towards facilitating preventive maintenance and/or reducing intervention times. With respect to distribution, mentioned is made of the need to deploy more pre-paid meters, as well as explore the regime of group metering for residential estates all with a view to reducing commercial losses. Also canvassed is the replacement of wooden distribution poles with the concrete type to minimize the incidence of broken/collapsed poles that caused circuit bridging that in turn leads to damages to feeder pillars and 16

17 distribution transformers, while collaboration of the DISCOS with relevant state Town Planning Authorities in the design and/or upgrading of the distribution networks. (vii) For the Nigerian Electricity Supply Industry as a whole, a case for a consumer tariff that is cost reflective and able to sustain the whole value chain is necessary and desirable to encourage the participation of the private sector. (viii) Also mentioned is the need to have a well defined and sustained consumer education to enlighten the consumer about the on-going reforms in the electricity supply industry as well as educating him as to his rights and obligation with respect to electricity connection. (ix) (x) (xi) A case is made for the putting in place of LTSAs with OEMs at the onset for major equipment to ensure continued serviceability of such equipment over a long period, and lastly, equipment manufacturers should be encouraged and incentivized towards in-country manufacturing of their equipment/parts to reduce machine/equipment downtimes due to delays associated with shipment/importation. In consideration of the huge capital investment that will be required to revamp existing infrastructures and build new facilities, the participation of the private sector in the electricity sector should be solicited and incentivized, and one major way to attract private sector participation will be the availability of cost reflective tariff in the industry. Finally, there is the absolute need for effort in human capital development for the sector particularly taking into cognizance the fact that most of the properly trained personnel in the industry have retired and/or nearing retirement, and as the industry expands, the shortage of adequate manpower will become more acute. 17