The Nigerian Bulk Electricity Trading (NBET) Plc says it has signed a partnership deal with Energy Exchange Istanbul (EXIST), a Turkish energy firm, to ramp up energy generation and supply.
In a statement over the weekend, the trading company said the cooperation agreement was signed at EXIST’s campus in Maslak, Turkey.
It said the signing ceremony was witnessed by Zainab Ahmed, minister of finance, who doubles as chairman, board of directors, NBET; Nnaemeka Ewelukwa, chief executive officer (CEO), NBET, and Ahmet Türkoğlu, chief executive officer (CEO), EXIST.
The statement added that the partnership was designed to explore mutually beneficial opportunities for growth between both agencies.
“The cooperation agreement covers the transfer of experience and business knowledge, and the design of a functional trading structure for the Nigerian Electricity Supply Industry (NESI),” it said.
With the partnership, NBET said the NESI can leverage the EXIST experience towards the design and implementation of policy frameworks that will ramp up energy solutions to the manufacturing sector and other vital economic sectors towards increasing Nigeria’s GDP and improving the living conditions of its people.
“The agreement also aims to liberalize the current market in Nigeria; simultaneously, for the cooperation, the parties have agreed to establish a partnership to support the optimisation of NBET’s current energy portfolio and identify sustainable means to scale up energy generation and supply in Nigeria,” the statement added.
“Concerning areas of cooperation, the parties also agreed to ensure knowledge development and share cross-visits to learn from each other’s experiences. Both parties have committed to further research and development in relevant areas that are beneficial for enhancing the energy sector in Nigeria.”
The statement further said EXIST would also assist “NBET in the design and implementation strategy and plan that would enable optimal bulk electricity trading that adopts a least cost trading model for energy efficiency”.
In fulfilling the conditions, NBET said it would also be assisted in understudying the Turkish experience and energy transition to adapt successfully to the Nigerian context.
According to the agreement, “the two parties will work towards establishing a renewable energy support scheme like the Turkish experience”.
They will work on “developing necessary feasibility studies to establish the energy exchange”.
Speaking at the event, Ahmed reiterated the country’s interest in furthering its partnership with the company.
“EXIST has reached an admirable stage. We also want to establish electricity markets by providing the necessary transformation in our country. We want to cooperate with you on this journey by walking hand in hand,” she said.
On his part, Ewelukwa expressed optimism that the cooperation agreement with EXIST would go a long way in re-positioning NBET for enhanced performance in the Nigerian electricity market and consolidating its accomplishments.
“The key aspects of the cooperation would see NBET strategically leveraging on cutting edge technology to chart a new course in its commercial transactions in the electricity market. It will ultimately pave the way for more power investments in the country and deepen competition in the market, with greater value delivery to participants in the market,” he said.
According to him, NBET would also synergise with EXIST in developing a framework for upscaling sustainable investments in renewable energy in line with the federal government’s commitment to diversify the country’s energy mix and transition to a low-carbon economy.