Ministry of Power

Energy

Introduction

Since creation of the State, petroleum & power matters had been handled by different ministries/parastatal . This trend had tend to diffuse the state’s focus & policy coherence in responding to energy matters at both local & national levels. Merger of power sector & office of the special adviser on petroleum gave birth to the Ministry of Energy as a response to the state Energy challenges. Energy industry calls for an integrated and focused planning. The ministry was later renamed Minstry of Power.

To provide the energy security that Bayelsa State needs in order to realise it’s full technological, industrial, economical & social development potentials.
Vision
To be the vehicle for effective exploitation and efficient utilization of the State’s energy resources for the transformation of the economy on a sustainable basis. 
 
To position Bayelsa State as a stop of first choice for local & international investors, capital and technology within the overall framework of national economic guidelines.
 
Functions of the Ministry
  • Formulate long term energy strategy for the State
  • Initiation & formulation of state policies & programme for the overall development of the energy industry.
  • To promote an enabling environment for effective generation, transmission, distribution & marketing of energy.
  • To initiate a survey of development requirements in the State e.g. renewable energy development.
  • Co-ordination & supervision of all bilateral and multilateral relations affecting the state energy industry.
  • Overall supervision & co-ordination of the activities of parastatal under the ministry e.g. Bayelsa State oil company(BOC), Bayelsa State Electricity Board (BEB)
  • Liaise with other govt agencies on all issues relating to energy.
  • To formulate strategies for maximum participation of the State in the emerging major restructuring of the Nigerian energy industry.
  • To administer and maximise return on equity investments of Bayelsa State in various energy industry partnerships.
  • Rural electrification and electrical installation, inspection, testing and certification.
  • Maximisation of revenue from power, oil & gas to the state.
 
Existing Power Situation in the State Prior to this Administration
  • Both Units of the 2X20MW Gas Turbine Power Station built by Okilo’s Government & Commissioned in April 1988 were all non-functional.
  • 1X31MW, RB211 Rolls Royce Gas Turbine project at Imiringi awarded to RoboMichael in 2006 was virtually at standstill because of unsettled variation request by the contractor.
  • The 3X20MW Gas Turbine project at Etelebou awarded to Codel International was on-going at a very slow pace due to none payment of completed work segments on the part of Government.
  • The only source of power in the state was the bulk purchase of power from PHCN
  • The existing switch gear system was not only obsolete but has also become a death trap for operators of the system
  • Lack of proper maintenance of existing transmission /distribution Infrastructure
  • Substandard town distribution networks (TDN) particularly in the state capital
  • Indiscriminate extension of transmission/distribution lines by all and sundry without proper planning
 
Power Sector Challenges
  • Epileptic power supply of 10MW from PHCN at an average cost of N65 million monthly and 20 MW supply from the Kolo Creek Power Station, presently undergoing repairs.
  • The one & only power station built by Chief Melford Okilo’s governmentt and commissioned in 1988 before State creation due for upgrading.
  • One & only transmission line built by Okilo’s government and commissioned in 1988 is obsolete & lacks adequate maintenance.
  • No injection sub-station.
  • Abandoned & uncompleted power sector projects.
  • Local community/street electricity committee taken over mainstream activities of state electricity board workers.
  • Unsuitable electricity structure.
  • Free electricity supply to Bayelsans without revenue generation to the state government.
  • Vandalization of power installations.
  • State spends almost N200 million to service & fuel generators for government offices & residences.
  • Inadequate manpower in the Ministry & parastatals.
  • Bayelsa free power supply to parts of Rivers State.
  • Major contracts awarded without technical inputs from the Ministry.
  • Major contract awarded to firm without technical and financial capacity.
  • Yenagoa city capital still on rural electrification network.
  • Injection substation awarded to the state under the NIPP project abandoned.
 
Power Sector Targets
Short term Plan
  • Develop a State Energy/Power master plan by mid 2009.
  • Complete all abandoned & uncompleted power station project by 2010.
  • Design a State Electricity Master Plan by 2009.
  • Quarterly Energy Parliament.
  • Disband local/community street electricity committee by end 2009.
  • Encourage public private participation (PPP) in the power sector(industry)
  • State power sector feasibility study – mid 2009.
  • Scrapping the State Electricity Board with the establishment of an Independent State Power Generation, Distribution and Trading Company.
  • To upgrade the Kolo-Creek power station
  • Provision of Distribution transformers and installation to strengthen the current distribution networks.

Medium Term Plan

  • To ensure the building of at least two more workable power stations outside Kolo-Creek within the first tenure of this Administration.
  • Urbanise Yenagoa electrification network by end 2010.
  • Generate at least 1,000MW and strengthen transmission & distribution of power to meet increasing demand within the first term of this administration.
  • To export power commercially to neighbouring states & industries by 2012.
  • Celebrate uninterrupted power supply in Yenagoa capital city by 2010
  • Ensure every Bayelsan stable electricity supply within the first tenure of this administration
  • Collaboration with Oil majors on power interdependency projects within the first term of this Administration.
  • Generate revenue from electricity by 2010.
Existing Oil Situation in the State Prior to this Administration
  • Taking over of non-operational six Riverine fuel stations from the Ministry of Environment.
  • The identification of new location for the sitting of Riverine fuel station.
  • Acquiring of Akbell fuel station.
  • Planned establishment of an Energy data bank/Library.
Oil Sector Challenges
  • Low federal allocation (FAAC) due to closure of oil fields.
  • No revenue from joint venture (JV) participation/other state Energy investment.
  • Drop in oil production due to unrest in the Niger Delta.
  • Building of the NNPC mega fuel station in the State.
  • 75% unlicensed fuel stations by regulating body – DPR
  • Non-operational of the NNPC mega floating fuel station at Nembe & Oporoma
  • Lack of adequate manpower in the Ministry & parastatals.
  • Sale of adulterated fuel in Yenagoa
Oil Sector targets
  • Restructure the Bayelsa Oil company to meet global challenges- 2009
  • Develop a State Energy/Oil master plan by mid 2009.
  • Liaising with JV operators to double our local participation in line with the state government local content policy on contract award & employment generation within the first tenure of this Administration
  • Ensure increased oil production capacity – 2010
  • To ensure completion of the NNPC mega fuel station in the State by 2009.
  • Ensure the operational take off of the floating mega fuel stations in Nembe & Oporoma by end of 2009
  • Access to refined products at prevailing market prices by all Bayelsans by 2012
  • Effective & efficient petroleum products monitoring team – 2009
  • At least one Federal Government energy industry regulating parastatal presence in Yenagoa by 2010
  • To generate a short and medium term petroleum investment plan by 2009.
  • To ensure at least two petroleum investment projects in Bayelsa within the first tenure of this Administration.
Gas Sector Challenges
  • No existing gas master plan
  • Gas flaring
  • Low revenue from gas
  • Insufficient gas infrastructure to capture "stranded gas"
Gas Sexctor Targets
  • Accelerate the process of stopping gas flaring in collaboration with appropriate authorities
  • Design & implement State Energy/Gas master plan -2009
  • Gas sector Feasibility study by 2009
  • Accelerate gas network development to tap ‘stranded gas’ within the first tenure of this Administration.
  • Access to refined gas products at prevailing market prices by all Bayelsans by 2012
  • Ensure optimal gas production & at least two gas investments projects in Bayelsa within the first tenure of this Administration
  • Maximise significant revenue from gas
  • Encourage public –private partnership in the gas sector
Conclusion
  • In order to achieve our ambitious targets in the energy industry, political support of the highest level is critical 
    The choices that we make will determine the course our state takes over the next century – whether we take our place amongst the world’s most developed states
  • There has never been a better time in Bayelsa’s history to take the State to the next level using it’s energy resources than NOW