The Nigerian Bulk Electricity Trading (NBET) Company and the Turkish energy firm, Energy Exchange Istanbul (EXIST) have signed an important cooperation agreement to boost Nigerian Electricity Market.
Special Adviser, Media & Communications to the Minister of Finance, Budget & National Planning, Yunusa Tanko Abdullahi in a statement said, the agreement was signed at EXIST’s campus in Maslak, Turkey.
The ceremony, according to the statement, was witnessed by NBET’s CEO, Dr. Nnaemeka Ewelukwa, on behalf of NBET, EXIST’s CEO, Ahmet Türkoğlu, and the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, in her capacity as the Chairman of the NBET Board of Directors.
The Minister, while speaking shortly after the deal was signed, said, “we want to cooperate with EXIST on this journey by walking hand in hand. The point that EXIST has reached is admirable. We also want to establish electricity markets by providing the necessary transformation in our country.”
EXIST’s CEO, Türkoğlu said: “As EXIST, we are ready to cooperate with the friendly country, Nigeria in the fields they need. Thank you for your interest in the activities of EXIST and for your visits.”
While NBET boss, Dr. Ewelukwa, expressed great optimism that the cooperation agreement with ENERJİ PİYASALARI İŞLETME A.Ş. (EPİAŞ) would go a long way in re-positioning NBET for enhanced performance in the Nigerian electricity market.
The key aspects of the cooperation would see NBET strategically leverage cutting edge technology to chart a new course in its commercial transactions in the electricity market.
It would 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.
According to him, NBET would also synergise with EPİAŞ in developing a framework for upscaling sustainable investments in renewable energy in line with the commitment of the federal government to diversify the energy mix in the country and transition to a low carbon economy.
The statement said, “the cooperation agreement signed at the ceremony covers transfer of experience and business knowledge, field visits, workshops, trainings, designing the institutional structure of the power market planned to be established in Nigeria and providing technical support.
“The agreement also aims to liberalise the current market in Nigeria.
“On the purpose of the cooperation, the parties have agreed to establish cooperation in the transition of NBET to an energy exchange.
“Concerning areas of cooperation, the parties also agreed to ensure development of knowledge, and sharing cross-visits to learn from each other’s experiences.
“Each party has committed itself to organise visits for delegations from the other party, including site visits and workshops, in order to gain key learnings from each other’s experience in the development of the energy exchange in Nigeria.
“The parties consider strengthening the institutional framework for the development of the energy exchange. The energy exchange institutional framework, to be adapted to the context and the ambitions of both parties, will be shared in order to improve the development and transition of NBET into an energy exchange.
“It is stated that technical assistance and capacity assessment of transition opportunities for the exchange EPİAŞ will provide technical assistance to NBET in assessing the transition opportunity for NBET to establish the energy exchange.
“In addition, EPİAŞ shall also assist NBET to design an implementation strategy and plan that would enable the transition of NBET into an exchange in a manner that is efficacious and follows least cost.
“In fulfilling the above conditions, EPİAŞ shall assist NBET in understudying the Turkish experience in transitioning to an energy exchange, with a view to adapting successfully to the Nigerian context.
“EPİAŞ will also assist NBET and other Nigerian institutions to lead a detailed analysis on the electrical needs evolution in Nigeria, in terms of establishing a competitive market based on the prevailing conditions in the Nigerian electricity supply industry (NESI).
“EPİAŞ will provide technical assistance to NBET towards the development of the energy exchange including institutional requirements, resources and expertise.
“EPİAŞ will assist NBET in undertaking a gap analysis in terms of structures, skills and competencies necessary to successfully establish the exchange.
Further to this plan, “the two parties will work towards the establishment of a renewable energy support scheme likewise Turkish experience.
“Both parties will work on the development of necessary feasibility studies for the establishment of the energy exchange”.