TheCable

Afolabi Aiyela, chief executive officer of Welbeck Electricity Distribution Limited, has commended the role of independent power producers (IPPs) in enabling the realisation of the goals of the power sector reform.

Speaking at a recent media briefing in Lagos, Aiyela said independent power producers such as Welbeck were filling a critical gap in the power industry by serving specific communities such as industries, commercial hubs and essential services.

IPPs are private entities that own or operate facilities to generate electricity and then sell it to utilities and end-users.

He said Welbeck had successfully delivered over six IPPs for specific communities in Lagos and around the country since its establishment.

“IPPs are meeting the critical needs of specific communities such as industries, commercial hubs and estates, which would otherwise have faced difficulties with unreliable power from the national grid,” Aiyela said.

“At Welbeck, for instance, we serve some key establishments across the country, and it will surprise you that the pricing is a lot more competitive than you would get with alternative sources of power.”

Emphasising the importance of reliable power supply to Nigeria’s economic recovery and growth, Aiyela called on the federal and state governments to partner IPPs to deliver on projects for their commercial enclaves.

He said the Lagos state government has been supportive of the company’s projects in the state, adding that “it is the way to go for states, especially many of them with commercial and residential clusters.”

Aiyela said Welbeck was currently undertaking three new power projects in Lagos, Imo and Oyo states, including a 2.2 megawatts (MW) plant for industrial consumers in Oregun Industrial Hub.

According to him, the company’s second ongoing IPP project is the Owerri IPP, a 3.3MW facility located in the heart of the Agro-allied industrial estate, which will facilitate the supply of cheap and reliable power supply to commercial consumers in the area.

The third IPP in Ibadan will produce 3.3MW for specific consumers, he added.