The US Trade and Development Agency (USTDA) sealed an agreement last week with two electricity distribution companies in Nigeria to develop a roadmap for implementing smart grid solutions.
The move to promote US smart grid solutions for Nigeria's transmission and distribution problems was formalized with memoranda of understanding signed with Eko Electricity Distribution Company and Ikeja Electricity Distribution Company, which have a combined service territory of one million customers in the Lagos metropolitan area.
A USTDA-sponsored feasibility study will assess the technological, economic, regulatory and financial frameworks required to expand and enhance the networks by focusing on business process reengineering and distribution automation.
Smarter energy distribution
The roadmap will also address Nigeria's key challenge of distributing installed power, an area in which USTDA has been actively promoting US solutions.
US financial services company Delphos International will also provide recommendations on how the distribution companies can collaborate to ensure network interoperability.
Leocadia I. Zak, director at USTDA, said: “The agency is pleased to strengthen its cooperation with our Eko and Ikeja partners, which have already purchased US technologies that can help them improve power distribution.
“The next phase of our partnership will introduce them to US industry experts who can assist them in developing comprehensive plans to modernize their electricity networks.”
The memoranda of understanding formalize the agency's work with privatized distribution companies such as Eko and Ikeja, created as part of Nigeria's unbundling of its state electrical utility in 2013.
Eko and Ikeja both took part in a USTDA-sponsored reverse trade mission that introduced them to US technologies that help cut electricity losses on the Nigerian grid.
The agency's work, which also supports the goals of Power Africa, the US government-led initiative to help electrify sub-Saharan Africa, also saw it develop an investment plan for another Nigerian partner - the Benin Electricity Distribution Company.
(Pic credit: Nigerian Eye)