Joseph Bakare
The Kano Electricity Distribution Company, (KEDCO ) is expanding investment in electricity supply arrangements with the allocation of 41 prioritized sites to 31 of the best Renewable and Off-Grid Companies in Nigeria to accelerate improvement in energy supply to its customers.
The DisCos Utility 2.0 Project seeks to enhance energy security within the KEDCO network, by unlocking renewable energy potential in the area and aligning with the Federal Government’s energy transition plan.
The 41 Sites were selected across the tri-state for the development of interconnected mini-grids and embedded generation projects to augment grid supply and improve reliability in the network. To reduce losses, all projects include network infrastructure upgrades similar to the $2 million, Zawaciki Solar Power Plant developed by KEDCO’s core investors – Future Energies Africa FEA, as a pilot for KEDCO Utility 2.0.
KEDCO has advanced in engaging with relevant stakeholders especially the Governments of the tri-state of Kano, Katsina, and Jigawa for input and support toward the success of these projects.
Areas covered under the scheme include Tokarawa Industrial Area, Amana and Kwankwasiyya Cities in Kano, Charanchi, Malumfashi, and Barhim Estate in Katsina and Kafin Hausa and Gumel towns, both in Jigawa State (see full site list below).
The DisCo had announced earlier that players in the Renewable Energy and Off-Grid space such as Axxela, PowerGen, DayStar, Elektron, Bagaja, ProServe, Husk and Westa (see full list below) had indicated interest in working with KEDCO on phase 1 of its Utility 2.0 concept. After a comprehensive procurement process, the Pre-qualified Developers were grouped into two categories – Tier 1 (1MW sites or greater) and Tier 2 (lower than 1MW), and selected proposed sites were duly allocated.
Pre-qualified Developers are required to register, pay fees and security deposits, complete an initial site assessment, and sign agreements within this month to move to site within Q3 2024.
An estimated 60MW is being apportioned to Developers that will handle the construction of Solar Power Plants, partner with KEDCO on the upgrade of distribution infrastructure in the communities, and provide metering infrastructure. Tokarawa, Challawa, and some of the proposed sites are designed to be Embedded Generation projects modeled as a bilateral contracting agreement between KEDCO and the Developers.
Utility 2.0 is the program that KEDCO’s core investor – Future Energies Africa is championing to make KEDCO the first green utility in Africa. KEDCO is approaching off-grid as an opportunity and not a threat to its business, by partnering with Developers.
Chief Strategy Officer, of the Distribution Company, Engr. Hussaini Sadiq, said “I believe KEDCO has great potential for investment and partnerships, particularly aligning with our host State Governments in reviving agro-industrial and commercial hubs, towards the re-industrialization and socio-economic empowerment of our communities. The proposed sites under the KEDCO Utility 2.0 have underserved customers with high unsuppressed load which makes it a great opportunity for all stakeholders.”
Chairman of the Company, Engr. Adamu Ibrahim Gumel stated “We are keen to explore all available solutions towards resolving energy deficiency in our network, thus Utility 2.0 will continue to grow and evolve. We are already working on phase 2 as 60MW is just a small portion of the energy gap we need to cover. We hope to continue to work with Developers that excel in this first phase into the future.”