In a move aimed at aligning with the changing landscape of the sector with the new Electricity Act, the Federal Government has revealed plans to unbundle the Transmission Company of Nigeria (TCN) into two distinct entities: Transmission Service Provider (TSP) and Independent System Operator (ISO).

The Honourable Minister of Power, Chief Adebayo Adelabu gave this indication while addressing participants at the Federal Ministry of Power Ministerial Retreat themed “The Integrated National Electricity Policy and Strategic Implementation Plan, Navigating and Aligning on the Path to Enhanced Electricity Reliability” held on Tuesday,12th December 2023, in Abuja.

Chief Adelabu emphasized that this decision was in line with the new Electricity Act of 2023 and responds to the industry's evolving demands. He articulated, "It’s time to restructure the Transmission Company of Nigeria (TCN) into two entities: the Independent System Operator (ISO) and the Transmission Service Provider (TSP). This restructuring must synchronize with the evolving landscape of State Electricity Markets, addressing calls for the decentralization of the national grid into regional grids interconnected by a new higher voltage national or super-grid."    

Addressing the policy focus of the ministry, Chief Adelabu highlighted the mandate of the Ministry to formulate an Integrated National Electricity Policy and Strategic Implementation Plan (INEP-SIP) as stipulated by the Electricity Act of 2023. He stressed the need for a departure from the outdated National Electric Power Policy of 2001.

The Minister elucidated that the Ministerial Retreat marked the commencement of a three-stage stakeholder engagement process to formulate the INEP-SIP, ultimately intended for presentation and approval by the Federal Executive Council (FEC).

In a goodwill message, the Minister of Finance and Coordinating Minister of Economy, Mr. Wale Edun, commended the Minister of Power for initiating the Integrated Electricity Policy and Strategic Implementation Plan. He emphasized the critical role of electricity in economic and social development, highlighting the imperative of expanding access to electricity for a substantial part of the population.

Further contributions from the Minister of Budget and Economic Planning, Mr. Abubakar Bagudu, underscored the commitment to delivering investment in power as outlined in Agenda 2050 for Nigeria. He emphasized the significance of the National Integrated Infrastructure Master Plan in revolutionizing the power sector.

Meanwhile, the Managing Director and Chief Executive Officer of TCN, Engr. Dr. Sule Ahmed Abdulaziz, presented the achievements of TCN in expanding and stabilizing the national grid for enhanced bulk power delivery. Notable accomplishments include the successful implementation of various transmission infrastructure projects across the country, resulting in increased reliability and improved power quality.

According to him, “In improving Grid stability and power quality, TCN has also implemented Frequency and Control and Load balancing, Grid Automation through Supervisory Control and Data Acquisition (SCADA), that will enable real-time monitoring and control of the power grid”.

The three-day retreat featured insightful discussions and breakout sessions by industry players and stakeholders on critical topics such as Electricity Market Design, National Wholesale Electricity Market, State Electricity Markets, Governance, Adherence to Rules/Contracts and Finance, Risk-Mitigated Domestic Gas-to-Power Market, TSP, ISO, Regional Grids, Super Grid, True and Effective Energy Transition for Nigeria, Human Resource Development for the NESI, Finance, Revenue Assurance, and Capital Investment Programmes across the Electricity Value Chain.