BusinessDay 26 Feb 2018

Monday 26 February 2018
C002D5556
BUSINESS DAY
25
RUSSELL STOKES
President and Chief Executive Officer of GE Power and
Senior Vice President of GE as of June 2017
to do the same to guarantee availability of power.
You mentioned something that is of interest to
me, that is power evacuation. We all know that Nigeria
has the capacity to generate 10,000 megawatts
but we hardly evacuate up to 5,000 megawatts, so
how can GE Power support Nigeria in its bid to
optimally evacuate at least what we generate?
GE’s Grid solutions business is really focused
on transmission and distribution capabilities. We
enable utilities and industry to efficiently manage
electricity from the point of generation to the point
of consumption with low, medium, high and ultrahigh
voltage electrical equipment and systems that
turn the world on.
Our teams integrate leading technology products
and solutions to solve customer problems,
making energy safer and more reliable through
our ability to generate, transmit, and distribute
electricity. We provide not just hardware but a
wide range of software platforms, energy management
systems and distribution management
systems that enable the flow of electrons. We also
continue to invest in distributed energy resource
management systems that allow people to better
integrate different sources of power generation in
to the grid. So, we have all these solutions that we
can provide to help solve some of the transmission
and distribution challenges.
In other words, you have technology that can
help Nigeria mitigate technical loses?
Absolutely. You are aware that GE has had a longstanding
country to company collaboration with
the government which translated into an MOU on
power. In recent times, we have adopted the “endto-end
approach” with regards to dealing with the
challenges of the entire power value-chain. This
holistic approach consists of identifying where
the bottlenecks are in each segment of the power
value chain and targeting sustainable interventions
to those segments. This covers generation,
transmission, distribution, software and even
capacity building.
We all know that dealing with bottlenecks
involves investments. What are the critical
factors that can help sustain a high level of
investment in Nigeria’s power sector?
Contrary to general opinion, there is a lot of financial
interest in Nigeria’s power sector. Most of the
development agencies have indicated significant
interest and commitment to the sector. There are
specific processes to deploy that capital. I think
what needs to happen is for an acceleration of the
process, regardless of whether it is through a public
tender or bilateral government-to-government
agreement.
So do you think that it is the government
or the private sector that should take the
driving seat in pushing the investment in
Nigeria?
No, I do not believe it is a question of drivers
and passengers. The role of government is very
critical because as you know, this is a very regulated
industry. Not only from the point of setting
policies but in being the primary mobilizers of
capital into the sector based upon some of the
policies and actions that government needs to
take to enhance investment climate. The scale of
the opportunities and challenges goes beyond
the resources of government alone. As you know,
the sector was partially privatised a few years ago
and all that investment was from private capital.
The additional investment capital will flow into
the Nigerian power market if the right policies
and enabling environment are in place. Private
sector players are intent on mobilising, investing
and modernising their infrastructure for more
efficient and reliable supply of power to Nigeria.
What are the other ways that GE can help
to optimise assets and reduce downtime of
systems?
Let me give some context here. The current
installed base of power in Nigeria is not being
made available as they are limited by very clear
technical bottlenecks. As part of the end-to-end
solution we spoke about earlier, GE’s total plant
management solutions portfolio demonstrates
our strength as a single service provider that understands
the full “plant-as-a-system” impact. We
can offer installation, maintenance, repair
and upgrade activities and our excellent
services capabilities enables us to optimize
the performance and long-term value of the
power plant to ensure high efficiency for the
units throughout the plant’s life cycle.
Today, our Power services team is offering
total plant management solutions and
guaranteeing the flexibility and availability
of over 100 GE units across the country and
have just signed an agreement with SPDC for
the Afam VI power plant. The local team has
also successfully carried out their first flange
to flange installation in the region at the
Transcorp power plant adding a significant
115MW of power to the grid.
Every day we engage with the government
and relevant stakeholders in the sector to
drive understanding around this end to end
approach.
Is that part of the MOU that GE signed
with the Federal Government committing
to generate additional 10,000 MW
over the next 10 years?
This is a clear demonstration of our followthrough
to that commitment and we are very
proud of the fact that in terms of commitment
to this country even in times like these,
which are quite challenging, we have been
unwavering. As we focus on stranded generation
and incremental power, we can talk to
you about any number of projects in various
stages of development. So, we are all in.
What do you think should be the best
approach for Nigeria to solve its power
problem?
Here are a couple of thoughts - I think there
should be an appreciation for the role that
public-private partners can play. It would
mean that the Federal Government ensures
that projects are executed and delivered. I
think there should be an appreciation that beyond
the additional investment in generation
in Nigeria, one must be thinking about how
to evacuate the electrons to people that need
them. This means that transmission and distribution
must be part of the overall strategy.
I think that there is a clear set of ideas and
actions that the sector believes GE can bring
but which we do not believe by any stretch of
the imagination that we can do on our own,
which is why we are here. We are talking to
customers and our partners, to understand
how we can collaborate better and how
together we can continue to move the vision
forward; bringing power to as many
people as do not have access to power here
in Nigeria.
Do you see any place for renewable in
all this?
Yes, I do. I see around the globe, everyone
is working through what is the appropriate
energy mix and a lot of that is predicated on
how countries set up overall policy around
emissions. The GE Power business provides
key equipment for solar installations so we
recognize the place of renewables and how
it is growing in the energy mix of countries
around the world.
What is the update on the MOU signed
with the Northern Governors on solar
project?
We signed the MOU with the Northern State
Governors, five governors all together and
that is a good example of our flexibility and
resourcefulness. We have two active projects,
Niger and Borno States around 100MW each.
What we tried to do is to bring in developers
that would support them as technical partners
and some of the technical assessment
is underway both in Niger and Borno. That
is one example of how we are meeting the
requirements of the country from the renewable
perspective.
You may recall that in December, we
signed with Mainstream for the rehabilitation
of the biggest hydro power plant in the
country. We are very proud that we are going
to be helping them deliver 80MW to the grid
by rehabilitating that site. We have localized
some of GE’s global capabilities right here
in Nigeria. We have built the supply chain
and GE’s footprint in Nigeria continues to
grow. I think it is clear that GE’s continuous
commitment to Nigeria has never wavered.
What could be the deal breaker, what
could make GE not actualise these
MOUs?
We know we must stay in partnership with
government as this is very important. They
have been very supportive. I do not see anything
to worry about in terms of our ability
to continue with the partnership we have
with Nigeria. Of course, there is a need to accelerate.
Everyone knows funding is another
issue and we have spoken extensively about
it. And of course, we will do our part where
possible to help mobilise the capital that is
required for Nigeria.
Five years from now, where do you
see Nigeria’s power sector and GE in
Nigeria?
I am an eternal optimist when it comes to
Nigeria. You must remember that this is one
of the biggest economies and markets for GE
in the continent. GE has nearly 800 people
here. We have invested heavily in our supplychain
and we have the fullest portfolio of GE
businesses in Nigeria. With respect to power,
we are confident that this is a market we are
going to be actively participating in for many
years because the opportunity is huge. We
share in the aspirations of Nigerians in terms
of increasing access to power. I think the
country needs companies like GE to really
get it done. And I think it has been a very
positive relationship in terms of how we can
work together.
From the global perspective, where do
you see the place of Nigeria in GE’s
operations?
This year, I have travelled to two regions only;
Africa is the second one I have visited, so it
is obvious that I believe in the potential of
Nigeria. Of course, being one of the largest
economies, the potential is enormous. Access
to electricity is important for a growing
economy to be able to unleash the potential
of businesses, families, and industries and
you must really believe in it. Therefore, we
continue to invest in the team, as well as
continuing to work with various partners to
deliver the desired energy outcomes for the
country. GE will stay committed.
Profile:
Russell Stokes is the President and Chief
Executive Officer of GE Power and a Senior
Vice President of GE as of June 2017.
In this role, he is responsible for leading
the company’s strategy on technology,
solutions and services across the entire
energy value chain from the point of
generation to consumption.
Russell joined GE in 1997 in the Financial
Management Program.
Prior to leading Power, Russell was the
President and Chief Executive Officer of
GE Energy Connections, the electrification,
grid and controls business of GE.
Before that, he served as the President
and Chief Executive Officer of GE Transportation,
a global leader in rail, mining
and marine industries. Russell has also
held numerous leadership positions in
finance, operations and services within
GE Transportation, GE Aviation and GE
Lighting.
Russell plays an active role in the Atlanta
community. He is a member of the Metro
Atlanta Chamber of Commerce Executive
Committee, the Atlanta Committee for
Progress, Usher’s New Look Board, the
Atlanta Junior Achievement Executive
Committee, and the board of The Commerce
Club, Atlanta, GA. Russell graduated
from Cleveland State University with
a degree in finance and completed GE’s
Financial Management Program.