NIGERIA – Golden Penny Power Limited, a subsidiary of Flour Mills of Nigeria (FMN) Plc, has taken a significant step in its diversification strategy by securing a permit from the Nigerian Electricity Regulatory Commission (NERC) to construct six off-grid gas plants across Lagos, Oyo, Ogun, and Cross River states.
Golden Penny is well-known for its extensive range of food products, including flour, pasta, and other staples that are vital to Nigeria’s food security.
With a total capacity of 100 megawatts (MW), these plants are expected to enhance energy reliability for the company’s extensive food production operations and support local power needs.
The permits are part of NERC’s broader initiative to boost electricity access in Nigeria through the issuance of nine new off-grid generation licenses in the first quarter of 2024.
These licenses, collectively amounting to 109.69 MW, are aimed at addressing power challenges in underserved regions.
The decision to invest in power generation underscores the company’s strategic approach to mitigating the challenges posed by Nigeria’s erratic power supply, which has historically affected production timelines and costs.
By generating its own power, Golden Penny not only secures energy stability for its operations but also contributes to the local power infrastructure, potentially benefiting nearby communities.
The move also reflects Golden Penny’s alignment with global sustainability trends, as the energy sector increasingly shifts towards decentralized and renewable energy solutions.
The use of off-grid gas plants is expected to reduce the environmental impact associated with traditional energy sources, marking a step forward in the company’s environmental stewardship.
This development comes at a time when other major corporations in Nigeria, including MTN Communications and Havenhill Synergy, are also receiving licenses to generate electricity independently.
MTN, for instance, has been authorized to build four captive generation plants across Lagos State, with a capacity of 15.94 MW.
Aside from MTN, SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited were permitted to generate captive power.
These initiatives collectively aim to bolster Nigeria’s energy sector, reduce reliance on the national grid, and promote economic growth by ensuring more reliable electricity supply.
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