The African Development Bank (ADB) yesterday assured the Nigerian Electricity Regulatory Commission (NERC) of its commitment to provide facilities for the construction of power plants to be fueled with renewable energy.

NERC Assistant General Manager, Media and Public Relations, Mr. Ayendi Patrick who made this known in a statement listed the renewable power plants to include small hydro, wind, solar, bio-fuel, land fill gas, geo-thermal and biomass power plants.

This assurance, according to the statement, was secured when four senior officials of ADB, led by the Chief Economist, Mr. Solomane Kone, met with the NERC Administrator, Mallam Imamuddeen Talba to assess the progress in the reform of the power sector by the Federal Government.

The meeting which held at the Commission’s headquarters, dwelt on the pricing regime of electricity under the Multi Year Tariff Order (MYTO) scheme as it affects private sector investments, security of returns on investments and improvement in power generation.

MYTO was introduced in July 2008, to replace the then opaque and unplanned approach to electricity pricing.

ADB, while commending the introduction of MYTO, suggested that certain components of the pricing template be adjusted to guarantee investors and financiers’ confidence in the system.

The ADB gave the assurance it was favourably disposed to providing facilities for any investor in renewable energy plants, but that such proposal must be realistic and must meet the conditions for good investment decisions.

The bank said it plans to assist the country’s efforts to improve power generation through its non-concessionaire window for the public-private sectors initiatives and that it would assist in the areas of building capacity on how to approach international finance organisations on infrastructure projects financing.

Meanwhile, Regulatory Commission (NERC) has allayed the fears of electricity consumers over the recent upward review of electricity tariff, saying customers will not be affected.

According to the Administrator, Mr. Imamdeen Tarba, consumers are spared the increase because the Federal Government has already subsidised the cost for them through the Multi-Year Tariff Order (MYTO).

He however dropped the hint that the upward review right rise with the exchange rate and inflation, which he said would only affect power producers and gas companies.

The administrator spoke with energy correspondents at a dinner in honour of the visiting delegation from the National Association of Regulatory Utility Commissioners (NARUK), Michigan Public Service Commission (MISPSC) and USAID in Abuja.