Energy Market And Rates Consultants Limited (EMRC Nigeria)

Today marks a pivotal moment as we reflect on the extraordinary achievements of the Special Board of Kaduna Electric under the visionary leadership of Rahila Thomas the first female Chairperson of any DisCo board. Over the past six months, the outgoing board has navigated significant challenges, achieved remarkable milestones, and set the foundation for a brighter, operational future for the DisCo. Some achievements include: • Reduced ATC&C losses from 71% to 64% • Increased revenue collection to a record ₦5bn in May 2024 • Improved billing efficiency from 51% to 56% and collection efficiency from 61% to 64% • Increased market remittance from 13% to 46% • Boosted metering gap closure by 7,096 meters, achieving 2% growth Also, the closing cash bank balance surged from ₦40.9m in January 2024 to over ₦1.5bn today, reflecting successful efforts in financial recovery and stability. As the outgoing board hands over, we join Kaduna Electric to extend our heartfelt gratitude for their commitment to efficiency and strategic leadership. We trust the new core investors will continue to propel Kaduna Electric to even greater heights! #Transformation #KadunaElectric #Leadership #Milestone #SuccessStory

Today marks the end of NERC’s Regulatory Intervention as the Special Board of Kaduna Electric (KE) hands over the baton to the new core investors, ASI Nigeria Ltd led by Aminu Abubakar Suleiman as the new Chairman. I feel privileged to have had the opportunity to serve as the first female Chairperson of a Board of an Electricity Distribution Company in Nigeria, and under the first Regulatory intervention. It has been a fulfilling 6 months of valuable working experience with my fellow Co-Directors, Engr. John Ayodele, Mallam Mahmoud Sharfuddeen, Dr. Adamu Kabiru, and the CEO, Dr. Umar Hashidu with his Executive Management Team. We are thankful to the Nigerian Electricity Regulatory Commission (NERC) for giving us the opportunity to serve as the Special Board of KE. With a great sense of responsibility in January 2024, we navigated the immediate challenges of a complex organisational structure, low employee morale, poor regulatory and HSE compliance, zero 33kv feeder metering indicative of poor energy accounting, 71% ATC&C losses, non-compliance of government’s cashless policy, which facilitates pilfering, monthly market shortfalls of N2.9bn, high cost of revenue collection at 7.5%, material court cases claiming over N150m against KE, premium customers off KE’s network equivalent of N1.5bn/month, no or low payment by state governments, STS migration of electricity meters at only 5%, environmental and social issues including extreme insecurity in some locations and very poor public image. The Board together with the Management Team extensively discussed and developed a sustainability plan. This plan actioned between January to June 2024 compared to second half year of 2023 resulted in an overall 7% ATC&C loss reduction from 71% to 64%. Average billing and collection efficiency increased from 51% to 56% and 61% to 64% respectively. Average revenue recovered per unit of electricity sold increased from N17.19/kWh to N24.67/kWh. KE’s market remittance obligation has increased to 46% from 13%, which was a trigger for the regulatory intervention. In May 2024 revenue collected rose up to N5bn – a first time ever since it was privatised in 2014. Gross profit which was negative at 163% is now 3%, the current ratio has improved by 122% indicative of how quickly current assets can be used to settle short-term obligations, the cash ratio has improved by 1,483% giving KE the ability to hedge against future challenges associated with illiquidity, which in the past have resulted in delayed salary payments and entitlements, payment to critical vendors to operations and even meeting urgent demand for consumer goods. The opening cash bank balance as of January 2024 was N40.9m and as at today the closing cash bank balance stands at over N1.5bn. There is no doubt that the foundation for recovery we have laid can turnaround this company with a sustained purposeful, strategic and dedicated leadership as have been proven. We wish the core investors great success!

Green hydrogen, produced using renewable energy sources, is emerging as a leading solution in the hydrogen sector. Unlike grey or blue hydrogen, which are derived from fossil fuels and contribute to greenhouse gas (GHG) emissions. Green hydrogen is a clean and more sustainable alternative. Germany's Wunsiedel Green Hydrogen Plant and Japan's Fukushima Hydrogen Energy Research Field (FH2R) are leading examples. These projects highlight green hydrogen's integration. In Nigeria, initiatives such as the Nigeria4H2 Project, Impact Hydrogen, and the The Africa Green Hydrogen Alliance (AGHA) are paving the way. These programs aim to develop national policies, promote sustainable practices, and lead green hydrogen efforts in West Africa. In today’s post, we explore the rise of green hydrogen, its benefits over other forms, and steps needed to advance its adoption and integration into our Nigerian energy systems.

Emerging energy storage technologies, such as advanced batteries are transforming how we store and use energy. These innovations enhance the reliability and efficiency of renewable energy sources, paving the way for a greener and more sustainable world. Today, let's explore the already existing storage facilities and the challenges they face which led to the promotion of cutting-edge technologies.

Since the Constitutional Amendment and the Electricity Act 2023 authorised the establishment of state electricity markets, 8 states have passed their electricity laws and 4 have established their State Electricity Regulatory Commissions.   In today's post, we analyse these regulatory changes and highlight critical issues that must be determined as Nigeria transitions to a multi-tier electricity market.

Happy New Month Everyone! Join us to celebrate our Impact Maker for this episode: Damilola Ogunbiyi! Damilola Ogunbiyi is the first CEO of Sustainable Energy for All (SEforALL) to be renewed for a second five-year term. Her retainment follows her great strides of ensuring proof-based support in capacity building which has driven sustainable energy policies and projects. This has also improved ecosystem efforts towards climate action development leading to an energy compact commitment of $1.3 trillion. Currently, she is also the Special Representative of the Secretary-General (SRSG) of the United Nations (UN) on Sustainable Energy for All and the Co-chair of UN-Energy.  Damilola holds a bachelor (B.Sc.) degree in Project Management with Construction and a master’s (M.Sc.) in Construction Management with Public-Private Partnership from the University of Brighton. Before joining Sustainable Energy for All, Damilola was the first female Managing Director of the Rural Electrification Agency of Nigeria. In this office, she initiated the Nigerian Electrification Project (NEP). This USD 550 million facility is a joint The World Bank and African Development Bank Group (AfDB) programme that to date has provided energy access to over 5 million people across the country. One of the components under the NEP is the Energizing Education Programme (EEP) which aims to provide uninterrupted electricity to 37 federal universities and seven teaching hospitals through off-grid power. As part of her numerous achievements, Damilola was the first female to be appointed General Manager of the Lagos State Electricity Board, responsible for public lighting, independent power projects and energy development in the state. Under her leadership, five independent power projects were completed to deliver over 55 megawatts of power to Lagos State hospitals, schools, streetlights, and the Government secretariat. She also completed a five-megawatt decentralized solar project for 213 schools and clinics in Lagos State. And with a passion in mentoring and empowering young people, Damilola created the Lagos State Energy Academy to build the capacity of young people in renewable energy technology. Damilola got into public service as the Senior Special Assistant to the Lagos State Governor on Public-Private Partnerships. Before her appointment, she was a consultant for the United Kingdom Department for International Development (DFID) on public-private partnerships.    Mrs Ogunbiyi currently serves as a member of the World Bank’s Private Sector Investment Lab, a member of the Climate and Environment Advisory Council of the European Investment Bank (EIB), and a member of the Global Leadership Council (GLC) of the The Global Energy Alliance for People and Planet (GEAPP).  So, join us as we congratulate and celebrate Damilola Ogunbiyi as she continues to contribute to a sustainable future for all, and inspire innovation. 

We're on an upward trajectory and expanding our dynamic team! This is a fantastic opportunity for talented professionals to join us on our journey of innovation and excellence in the energy sector. We're growing our team with fresh talent and ideas. We are currently looking for a Administrative Assistant to join our dedicated team in driving impactful business operations, be a part of our mission to transform the energy landscape. Let's shape the future together!

Traditional cooking methods, which mostly involve burning firewood and other fossil fuels, contribute to greenhouse gas (GHG) emissions. These gases, when emitted, affect the stability of the environment and the health of the people living in it. In today’s post, we look at the evolution of clean cooking technologies, their benefits, barriers to adoption, and recommendations for achieving clean cooking advancements. Federal Ministry of Environment, Nigeria RUWES , Clean Cooking Alliance (CCA)

In April 2024, Tesla faced renewed criticism over its ESG stock status, a debate that harkens back to its removal from the S&P 500 ESG Index two years ago due to workplace concerns. In this article, we assess Tesla's position by examining the key factors that define an ESG stock and the intricate dynamics of ESG investing. #SustainableInvesting #ESG #Tesla #ClimateChange #InvestmentStrategies

Last week, Energy Market And Rates Consultants Limited (EMRC Nigeria), China Machinery Engineering Corporation (CMEC), and FGN Power Company visited Ikeja Electric, Eko Electricity Distribution Plc, and Ibadan Electricity Distribution Company (IBEDC) as part of the Presidential Power Initiative (PPI). The PPI is a groundbreaking initiative aimed at addressing Nigeria's energy challenges by unlocking stranded capacity in the national grid and significantly enhancing the transmission and distribution network. The project will unlock 4,000 MW of electricity, significantly improving supply nationwide. By boosting grid capacity and efficiency, we aim to reduce the energy access gap, bringing reliable power to unserved and underserved areas across Nigeria. Improved electricity access means more than just lights on in homes; it means enhanced economic opportunities, better healthcare, improved education, and a higher quality of life for millions of Nigerians. We're not just expanding the grid; we're extending its reach to empower communities that have long been in the dark. This initiative is about creating sustainable development and a brighter future for all. We are excited to be part of the core team driving this pivotal initiative, working alongside brilliant minds and dedicated professionals to make a real difference. #Energy #Nigeria #PowerInitiative #Electricity #Infrastructure #SustainableDevelopment #PPI #Innovation #EconomicGrowth #CommunityEmpowerment Kenny Anuwe Folake Soetan Rekhiat MOMOH