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FG plans TCN restructure to align with electricity act

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The Federal Government of Nigeria has revealed its intention to restructure the Transmission Company of Nigeria To align with the Electricity Act 2023 and meet the evolving demands of the industry.

The announcement was made by the Minister of Power, Mr. Adebayo Adelabu, during the Ministerial Retreat on the Integrated National Electricity Policy and Strategic Implementation Plan in Abuja.

Addressing the gathering under the theme ‘Navigating and Aligning on the Path to Enhanced Electricity Reliability,’ Adelabu outlined the proposed restructuring of TCN into two distinct entities: the Independent System Operator and the Transmission Service Provider.

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Adelabu emphasized the need for this restructuring to align with the changing landscape of state electricity markets.

He also highlighted the growing calls for decentralizing the national grid into regional grids interconnected by a new higher voltage national or super grid.

In his address, Adelabu raised critical questions related to the government’s role in providing electricity nationwide, citing models from China’s centralized approach and the diverse access models seen in the United States.

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The minister noted, “Understanding how to handle subsidies, cross-subsidies, and aligning the Rural Electrification Agency’s role with emerging state markets are vital questions that demand stakeholder scrutiny for effective resolution.”

Adelabu further stressed that achieving the goal of reaching a GDP of one trillion dollars by 2030, as envisioned by President Bola Tinubu, requires substantial energy investments.

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He urged collaboration between the Federal Government, state governments, and local governments to expand electricity coverage and distribution across the nation.

The proposed restructuring is expected to contribute to the overall enhancement of the electricity sector’s efficiency and reliability.

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