The Federal Government has said power generation, distribution and transmission companies, gas suppliers, consumers, among others, will conduct electricity transactions through an automated energy trading platform in 2023.
Nnaemeka Ewelukwe, the Managing Director, Nigerian Bulk Electricity Trading Plc, disclosed this in a presentation titled, ‘Actualising Enhanced Electricity Supply and Commercial/Industrial Decarbonisation in Nigeria.’
According to him, 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.
According to document, Ewelukwa stated that the platform would also serve as a spot market for real-time energy trading as the market developed further.
“IPPs (Independent Power Plants) wishing to sell power can register on the platform and immediately have access to a comprehensive database of commercial/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 network; gas pipeline network; energy locations, including solar irradiation, wind and mini-hydro potentials.”
According to Ewelukwa, the interactive map would facilitate transactions structuring by willing buyers and sellers.
He added that it would also boost network investment coordination, 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.”