Explore untapped opportunities in Nigeria’s electricity sector as outlined by expert Biodun Ogunleye, focusing on intelligence gathering, integration and more.
Management and Strategic Leadership expert, Biodun Ogunleye, in a recent webinar by Nairametrics, identified intelligence gathering and integration as untapped opportunities in Nigeria’s electricity sector.
Recreating Business Landscape with the New Electricity Act
Ogunleye revealed that the recently introduced Electricity Act is a game changer.
It’s not just modifying the existing norms in the electricity market, it’s recreating the business landscape across the entire value chain.
It is offering an array of business opportunities for entrepreneurs, investors and businesses alike.
The Reality of New Electricity Markets
In response to Onyinye Nzelu, Head of Mini-grids at Engie Energy Access, who suggested the creation of 37 new electricity markets, Ogunleye demurred.
He pointed out that some states are grappling with electricity viability issues, so the idea of 37 new markets might be a bit too optimistic.
However, the potential for more than 20 new electricity markets does exist.
This, according to Ogunleye, would be possible if states collaborate to harness their resources in the sector, given the newfound authority to generate and distribute electricity within their jurisdictions.
Problems: A Source of Opportunity
Ogunleye firmly believes that every problem in Nigeria’s electricity sector is a disguised opportunity.
These challenges present diverse avenues for investments, improvements, and collaborations between capital owners, business enthusiasts, and current franchise holders.
Embracing Monitoring and Intelligence
One area of opportunity that Ogunleye emphasized is monitoring and intelligence.
He believes that the Nigerian electricity sector desperately needs an intelligence upgrade, through the implementation of Internet of Things (IoT) and data analytics.
Lack of intelligence is a key reason behind vandalism and electricity theft.
With real-time access to gadgets and equipment, these crimes can be significantly curbed.
According to Ogunleye, the effective use of cutting-edge data analytics in the electricity value chain can also counter energy theft.
Cashing in on Excess Electricity
Ogunleye identified another opportunity in the sale of excess electricity.
Many Nigerian companies operate within fixed hours, leaving their energy resources idle for substantial portions of the day.
He suggests that these companies could benefit from selling their unused electricity, simultaneously enriching the system.
Creating Synergy through Infrastructure Integration
According to Ogunleye, now is the time to consider solution infrastructure as a responsibility of the distribution companies (DisCos).
These facilities can be franchised or developed by third parties who would maintain them and collect toll fees.
This would not only ensure constant availability, but might also foster better service delivery than what is currently obtainable.
Live Data for Optimal Performance
Ogunleye also underlined the importance of live data in state transmission stations.
Under the new Electricity Act, states have the responsibility to implement regulations suitable to their specific situations.
If each state takes on this challenge, stability in the sector can be achieved, and investors’ fears allayed.
With live data, theft and vandalism can be reduced, incentives can emerge, and losses minimized.
In essence, transparency can lead to transformation.
Ogunleye’s insights highlight the vast potential in Nigeria’s electricity sector, despite its current challenges.
By embracing intelligence, selling excess electricity, integrating infrastructure, and using live data, the country could transform its energy landscape, creating a win-win situation for all stakeholders.
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FAQs
What is the new Electricity Act in Nigeria?
The new Electricity Act is a law aimed at restructuring the electricity market across its value chain to create more business opportunities.
What is the potential for new electricity markets in Nigeria?
According to Biodun Ogunleye, more than 20 new electricity markets could emerge if states collaborate effectively.
How can the problem of electricity theft be addressed?
Ogunleye suggests using IoT and data analytics for monitoring and gathering intelligence, which can help curb electricity theft.
What role do distribution companies (DisCos) have in infrastructure integration?
DisCos are responsible for providing solution infrastructure, which can also be developed by third parties.
What is the importance of live data in the electricity sector?
Live data can help reduce theft and vandalism, provide incentives, and minimize losses. It leads to increased transparency and stability in the sector.