EFFECT OF COVID-19 PANDEMIC ON POWER SECTOR RECOVERY, AND MARKET GROWTH PLAN IN NIGERIA
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EFFECT OF COVID-19 PANDEMIC ON POWER SECTOR RECOVERY, AND MARKET GROWTH PLAN IN NIGERIA
Chapter one
Introduction
Background of the study.
The Coronavirus (COVID-19) has caused widespread industry shutdowns and supply chain disruptions owing to port closures, resulting in worldwide rippling effects across all economic sectors in a rare “twin supply-demand shock.”
The Covid-19 coronavirus was discovered in China’s Hubei region in December 2019 and has since become a global health danger, affecting 140 nations and prompting the World Health Organisation (WHO) to declare a global pandemic.
The power industry is one of the sectors affected. Power Technology interviewed key players regarding Covid-19’s impact on generation and supply.
The COVID-19 lockdown has resulted in the suspension of all but essential business activities across the country. As a result, electricity consumption from industrial and commercial clients has decreased dramatically, while household demand is predicted to climb.
The Coronavirus Disease 2019 (COVID-19) pandemic is having both direct and indirect effects on the electric power sector. To yet, the pandemic’s economic repercussions have had the greatest indirect influence.
Customers who have lost income due to the epidemic may be unable to pay their monthly electrical payments. Under normal circumstances, utilities and their state or municipal regulators implement processes to terminate electric service to non-paying consumers (often known as shutoffs).
Many utilities have voluntarily ceased shutoffs, while many states and towns have prohibited them as part of their COVID-19 reaction. Many of these shutdown moratoria are temporary, raising the possibility that shutoffs will resume just when the summer season boosts the demand for air conditioning.
Many utilities anticipate revenue losses in the near term as a result of lower sales and cutoff moratoria. It is unclear how any lost utility revenue will be addressed once normal conditions resume.
Revenue shortages are frequently offset by higher electricity rates in subsequent years, though regulators may be hesitant to raise rates if economic activity stays low.
It is also unclear what steps utilities and state or municipal authorities will do if clients accumulate huge delinquent bills during a cutoff moratorium. Most shutdown moratoria do not involve debt forgiveness. Customers must eventually pay for the electricity they use.
Statement of the Problem
COVID-19 may have an impact on industry investment, generating difficulties for Congress. Companies may be unable to finish planned construction activities in time to fulfil the deadlines for wind, solar, and carbon capture tax credits that are about to expire.
Customers who have lost income due to the epidemic may be unable to pay their monthly electrical payments. Under normal circumstances, utilities and their state or municipal regulators implement processes to terminate electric service to non-paying consumers (often known as shutoffs).
Many utilities have voluntarily ceased shutoffs, while many states and towns have prohibited them as part of their COVID-19 reaction. Many of these shutdown moratoria are temporary, raising the possibility that shutoffs will resume just when the summer season boosts the demand for air conditioning.
The objectives of the study
The study’s aims are:
To determine the extent to which the COVID-19 pandemic has affected the electrical sector.
To assess the impact of COVID-19 on market growth.
To determine whether COVID-19 is the primary source of the unstable power supply.
Research Hypotheses
To ensure the study’s success, the researcher developed the following research hypotheses:
H0: The COVID-19 pandemic has had little effect on the power sector.
H1: The COVID-19 pandemic has an impact on the power sector.
Hypothesis 2: COVID-19 has no effect on market expansion.
H2: COVID-19 affects market growth.
Significance of the Study
The study will have a substantial impact on students, the power sector, and the Nigerian government. The study will provide a thorough understanding of the impact of the COVID-19 epidemic on Nigeria’s power sector recovery and market expansion plan. The study will also serve as a reference for other researchers who would venture on the relevant topic.
Scope and limitations of the study
The study’s scope includes the impact of the COVID-19 epidemic on power sector recovery and market expansion plans in Nigeria. The researcher faces various constraints that limit the scope of the investigation;
a) AVAILABILITY OF RESEARCH MATERIAL: The researcher has insufficient research material, which limits the investigation.
b) TIME: The study’s time frame does not allow for broader coverage because the researcher must balance other academic activities and examinations with the study.
1.7 Definition of Terms
Infectious disorders are caused by pathogenic microorganisms, such as bacteria, viruses, parasites, or fungus, and can be passed, directly or indirectly, from one person to another.
COVID19: Coronavirus disease (COVID-19) is an infectious disease caused by a recently discovered coronavirus.
Power sector: Nigeria’s electricity sector generates, transmits, and distributes megawatts of electricity, far less than what is required to meet basic residential and industrial demands.
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