FIRST

FIRST IPP
IPP IN
IN NIGERIA
NIGERIA

ABA CLEAN ENERGY CARBON PROJECT

Bruce Johnston
Aba
 Genesis of Aba IPP

 December 2000 – Geometric Power Limited (GPL) (sponsor and

developer of Aba IPP Project) launches the Abuja 22MW
Emergency Power Plant
 March 2004 – President Obasanjo approves GPL’s Aba IPP as
first privately financed project
 May 2004 – Minister of Power and Steel, MD/CEO of NEPA and
GPL sign an MOU to build the Aba IPP according to the
President’s directive
 April 2005 – Minister of Power and Steel, MD/CEO of NEPA and
APL sign an agreement for the lease of NEPA assets in Aba by
APL for 15 years
 August 2005 – President allocates supply of gas for the Aba IPP
in the National Gas Master Plan
 Project Background

 Current situation – Industries and other consumers presently

depend on expensive diesel generation for a substantial part of
their production because of inadequacy of the power supply from
the national grid

 Aba IPP Project – Will supply reliable power to industries,

commercial businesses and residential homes in Aba through
construction and operation of 140 MW gas fired power plant

 Downstream – Construction of own industry-centred distribution

lines: several industries poised to expand production capacity if
reliable low-cost power supply is assured

 Other Customers – Commercial and residential consumers to

receive power through distribution lines in “ring-fenced” network
leased from PHCN
 Project Description

 Structure
 Island model disconnected from the national grid and serving
industrial and residential customers
 Power Station
 Installed capacity of approximately 140 MW comprising 3 gas
fired open cycle turbines with opportunity for expansion
 EPC Contractor to construct, install and commission power plant
on turnkey basis
 Subsequent procurement of O&M Contract
 Distribution Lines
 33 KV distribution lines to be constructed from power station to
supply reliable power to GPAL Customers through seven
distribution substations
 Project Description (Cont.)

 Substations
 33 KV Power Station substation with eight outgoing 33 KV
Feeders to be constructed for evacuation of power generated
at the Power Station

 New Distribution Substations

 Four distribution substations to be constructed within the city
of Aba and equipped each with 2x15 MVA 33/11 KV
transformers to supply power to GPAL customers
 Osisioma
 Ogbor Hill
 Factory Road
 Port Harcourt Road
 Project Description (Cont.)

 Leased Distribution Substations

 Three distribution substations (each equipped with 2x15

MVA 33/11 KV transformers) leased from NEPA to supply
power to residential and commercial customers through APL
 NEPA Aba Control Substation
 NEPA Power Station Substation
 NEPA Umuode Substation
 The Clean Energy Project

 Nigeria's first Clean Energy Carbon Project to benefit from the

Clean Development Mechanism ("CDM") established under the
Kyoto Protocol.

 Project has qualified for $9 million carbon grant from the

Community Development Carbon Fund (CDCF) (set up by the
World Bank).
 Carbon Finance

 General term applied to financing under which a Fund/entity

seeks to purchase greenhouse gas emission reductions ("carbon"
for short) to offset emissions in the OECD.

 Under Carbon Finance arrangements (or ERPA) a clean

development project in a developing country can "sell" carbon
credits, obtained by replacing more polluting projects, to buyers
in industrialised countries seeking to meet their Kyoto
obligations to reduce emissions in those countries.
 Community Development Carbon Fund

 A public-private partnership of governments and 16 companies

and organisations managed by the World Bank.

 Designed to provide communities in developing countries, and in

particular least developed countries, with an opportunity to
benefit from new investments in renewable energy and clean
technologies that aim to reduce greenhouse emissions and
mitigate effects of climate change, while improving the welfare
of the communities involved.

 Community development benefits of ABA Project include access

to electricity, construction of a school, health centre and a road
for the surrounding communities of Aba Plant.
 ABA IPP Investment Structure

CDCF

Carbon Funding
 ABA IPP Power Delivery Model

Gas Supplier

Gas Transporter
 Allocation of Power Plant Capacity

 Unregulated Customers
 At least 60% to industries directly via new GPAL owned
distribution lines and substations

 Regulated Customers
 Up to 40% to residential and commercial customers via APL
leased PHCN distribution lines and substations
 Power Purchase Agreements

 Unregulated Supply
 Each industry off-taker will sign PPA with GPAL
 Each industry off-taker will provide payment security in the
form of revolving bank guarantee
 Industry off-takers will pre-pay for one month supply
 Tariffs

 Regulated Supply
 Each customer will sign a Standard Connection Agreement
(with APL)
 Customers will use pre-pay meters
 Tariffs
 Gas Supply

 Requirement
 Plant requires ~43 mmscf/day

 Supply
 Primary fuel is natural gas supplied through a pipeline from Imo
River and the gas gathering field in Owaza and Obigbo
 GPAL will sign a GSA with Gas Supplier
 Transportation
 To be transported through a new pipeline constructed by
separately procured gas transporter
 GPAL will sign a Gas Transportation Agreement with Gas
Transporter
 FIRST
FIRST IPP
IPP IN
IN NIGERIA
NIGERIA

ABA CLEAN ENERGY CARBON PROJECT

Bruce Johnston