Power generation, distribution, and transmission companies, gas suppliers, and consumers, among others, will conduct electricity transactions through an automated energy trading platform in 2023, the Federal Government has said.
The government said 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.
Managing Director, Nigerian Bulk Electricity Trading Plc, Nnaemeka Ewelukwa, disclosed this in a presentation titled, ‘Actualising Enhanced Electricity Supply and Commercial/Industrial Decarbonisation in Nigeria.’
In the document, which was obtained by our correspondent in Abuja on Wednesday, Ewelukwa stated that the platform would also serve as a spot market for real-time energy trading as the market developed further.
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 and 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 networks; gas pipeline networks; 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.
It would also 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,” he said.
He added, “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.”
Ewelukwa said the Securities and Exchange Commission, the Nigerian Electricity Regulatory Commission, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority were being engaged by NBET on the new initiative.
He further noted that the Federal Ministries of Power, Finance, Budget, and National Planning, Industry, Trade, and Investment, as well as the media and CSOs, were being engaged.
On industry groups that the NBET was interacting with, Ewelukwa outlined them to include: the Manufacturers Association of Nigeria (3064 members); the Nigeria Employers Consultative Association (332 members); the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (64 member chambers; 401 corporate members); the Nigeria Association of Small-Scale Industrialists; and the Nigeria Association of Small and Medium Enterprises.