BY JONAH NWOKPOKU

Aggreko, a Scottish firm that specialises in providing temporal power solution and temperature control across the world is currently in talks with five electricity Distribution Companies, DISCOs in Nigeria, to provide embedded power to them.

Embedded power generation is a situation where a generator is directly connected to the distribution network.

It consists of smaller or modular generators that use a variety of generation technologies such as solar, wind, biomass, diesel, fuel, crude oil and hydro. It is also a useful means of dedicating power to state and local governments, eligible customers and others.

Aggreko’s Regional Managing Director, David Taylor-Smith told newsmen in Lagos that the company is desirous to discuss with the 11 DISCOs in the country about embedded power solution opportunities.

He explained that Aggreko has its manufacturing company in Scotland but already operates in 28 African countries including Nigeria providing about 1.3 Gigawatts of electricity across the continent.

“There are three markets in Africa where we set up permanent businesses to keep equipment in the country and our team of engineers. They include Nigeria, South Africa and Kenya.  We chose these countries because their economy are bigger and also we think that there is demand for power and a demand on the kind of way we provide power.

“We think that the most exciting opportunities in the whole of Africa is Nigeria because there is a big demand for power and also because we provide power in the oil and gas industry. We have been working here for a number of years but we have been doing it on a project by project basis. The important thing now is that all of our team got equipment in-country.

“We have Nigerian engineers and any time they need more equipment it is quite easy because they keep those equipment mobile anywhere in the world. So if there is a need for more power and there is an emergency, we put the power on quickly,” Smith said.

Besides embedded power solution; he noted that there are lots of opportunities in Nigeria to also provide captive power.

“We think there are lots of opportunities to provide captive power and this happens when a company comes to us and tells us they have been using power from the national grid but they want reliable power, then we put on power on site which could be 10 or 20 megawatts,” he said.

He added that there are no quick fixes to power problems in Nigeria but reforming the sector is the way forward.

Smith also explained that the successful power reform must be backed up with the  right regulatory frame work so that people will know the prices they are charged.

He noted that Africa with special focus in Nigeria is a potential market but the regulated tariffs are less than the cost of production.

“No business is going to go there if the tariff is less than the cost of production, so there has to be the right regulatory environment,” he said.

Also speaking, Aggreko’s Managing Director, Nigeria, Mr. Alaba Owoyemi disclosed that the company has executed some projects in Nigeria with success stories and challenges.

“In 2005 we have about 20 Megawatts in Abuja which was in partnership with Geometric Power; we have also done some jobs with oil companies like Shell and Mobil.  At present we are supporting the manufacturing sector, most of the manufacturing companies are depending on us.

In the area of challenges ?that we are facing, it is not different from what other multinationals are facing. We are having some complex issues with our import processes.

?”So what I am saying is that we are having some issues which is out of our control. Nigeria’s import system is very complex and the regulatory framework is not really friendly. Another area of challenge is stability because lots of things are happening in the country and as an investor you cannot really make up your mind because you are not sure what the future holds,” he said.