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THE FUTURE OF ELECTRICITY TRANSMISSION

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 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 87 ::   Attributes: Questionnaire, Data Analysis ::   428 people found this useful
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CHAPTER ONE

INTRODUCTION

  1. BACKGROUND OF THE STUDY

Electricity market has been a sensitive arena that continually attracts global attention and forms a top agenda on the to-do menu of virtually all governments globally. The threat it poses to a national economic sustainability, development and appreciable growth is conspicuously visible in the way each country of the world seek and exploit various alternative energy sources of generating electricity in the most economical and environmental friendly way. In the 2012 United States of America (USA) presidential debate, increase in power supply was seen by both contestants as the roadmap to job creation and national economic improvement (Clarke, 2012).

The recent increase in costs of generation and the pass through to customers of these costs via "fuel adjustments" has elicited unprecedented reaction from the public and consumer groups to potential inequities in currently existing electricity pricing practices. Transmission and distribution costs contribute significantly to the total costs of providing electrical service. In 1974, privately owned electric utilities in the United States spent about 35% (over $7 billion) of their total capital expenditures for transmission and distribution equipment. The expenditures for operation and maintenance of this equipment were about $3.0 billion, an amount equal to about 1/2 the total costs of fuel in 1972.

        The costs derived from the transmission and distribution (T&D) system have historically comprised about 2/3 the costs of producing and delivering electricity to residential-commercial customers, and over 1/3 the total costs supplying electricity to large industrial customers. The difference in the T&D equipment and associated operation and maintenance requirements is the major reason that historical costs of electricity to large industrial customers have been significantly less than those for small residential or commercial customers. Nigeria’s power sector had operated for several decades as a state monopoly then called National Electric Power Authority (NEPA) until 2005. NEPA controls electricity generation, transmission and distribution facilities with all the profound problems inherent in public monopoly. This over centralization made it impossible for electricity supply to keep pace with the growth in population and economic activities. Nigeria has the biggest gap in the world between electricity demand and supply, providing its population of over 160 million with less than 4000 megawatts of electricity.

The Nigerian power sector is controlled by state-owned Power Holding Company of Nigeria (PHCN), formerly known as the National Electric Power Authority (NEPA). The government has separated PHCN into eleven distribution firms, six generating companies, and a transmission company, all of which will be privatized soon. For many years in Nigeria, the sector has been plagued by a plethora of problems. These problems included low generation capacity, poor distribution, decaying facilities and many others. Many countries prior to reform have largely one state owned utility carrying out all the activities in that sector. Considering all the efforts towards sustainability of power in Nigeria, from ECN to NEPA down to PHCN, many problems persisted against realizing the goal. Problems such as uncompleted target of power generation, insufficient equipment, substandard methods of transmission, poor zoning of distribution, low voltage supply, unauthorized connection and disconnection, corruption in the management, equipment vandalization and inefficient distribution planning remain the menace in accomplishing the aim of adequate power supply in Nigeria. It is to this regard that the study is based on the future of electricity transmission in Nigeria.

 


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Project Information

Format:MS WORD
Chapter:1-5
Pages:87
Attribute:Questionnaire, Data Analysis
Price:₦3,000
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