Investment platform

Electricity Distribution Investment Platform

INTERSTE is developing a platform to invest in electricity distribution in Nigeria. Its project company brings power from an independent power producer (IPP) to ring-fenced franchise areas, invests in the distribution facilities inside them and serves customers directly.

The project company

Tuchman Marketing and Services Limited (RC 1880742), incorporated in Nigeria, is the project company (SPV) for the platform. INTERSTE is its principal sponsor and invests alongside other investors.

The SPV’s core advantage is its close relationships with multiple independent power producers (IPPs) in Nigeria. The IPPs have granted the SPV exclusive offtake rights for sale into the networks of different licensed distribution companies (DisCos).

The SPV works with the DisCo to deliver that power to customers, organises investment in the distribution side and runs each franchise area on the same model as Aba Power Limited Electric (APL) in Aba.

How the platform works

The SPV secures a ring-fenced service area within a licensed DisCo’s network. Inside that area it invests in all distribution facilities: substations, transformers, the billing system and smart meters.

The IPP’s power reaches the area through the DisCo network. The SPV meters and bills customers directly, then pays the DisCo its franchise fee and pays the IPP for the electricity.

Power and payment flows

Power Payments

How the platform works: power from the IPP through the DisCo network to the SPV franchise area and customers; payments from customers to the SPV, and from the SPV to the DisCo and the IPPPower producer (IPP)independent, NigeriaDisCo networklicensed DisCoSPV franchise arearing-fenced service areaCustomerssmart prepaid meterspowerpowerpowerprepaid paymentsfranchise feeenergy payments
  1. Power producer (IPP)independent, Nigeria
  2. power
  3. DisCo networklicensed DisCo
  4. power
  5. SPV franchise arearing-fenced service area
  6. power
  7. Customerssmart prepaid meters
  8. Customers → SPV: prepaid payments
  9. SPV → DisCo: franchise fee
  10. SPV → IPP: energy payments

The platform at a glance

  • Power supply

    Multiple independent power producers (IPPs) in Nigeria supply the power. The SPV holds exclusive offtake rights for sale into the networks of different DisCos.

  • Franchise area

    A ring-fenced service area within the network of a licensed DisCo.

  • Distribution investment

    The SPV invests in all distribution facilities in the area: substations, transformers, the billing system and smart meters.

  • Metering and billing

    Customers use smart prepaid meters. The SPV meters and bills them directly, as APL does in Aba.

  • Payments

    Customers pay the SPV. The SPV pays the DisCo its franchise fee and pays the IPP for the electricity.

  • Regulation

    Each franchise area is set up under definitive agreements with the DisCo and the approvals required by Nigerian electricity regulators.

INTERSTE’s role

INTERSTE is the principal sponsor of the platform and invests in the SPV alongside other investors.

The platform builds on the Nigerian metering experience of KAYZ Consortium Limited, in which INTERSTE has an indirect interest. Since 2024, KAYZ has supplied and installed more than 418,000 prepayment meters for APL in Aba, Abia State, and it has served distribution companies under Nigeria’s Meter Asset Provider (MAP) programme.

Smart metering experience KAYZ – APL Metering Project 

Our investment approach

  1. 01

    Due diligence

    Each investment follows technical, commercial and legal due diligence with qualified advisers.

  2. 02

    Compliance

    Investments are structured to comply with Nigerian and Australian law, including anti-corruption and sanctions rules.

  3. 03

    Approvals

    Projects proceed under definitive agreements and the approvals required by NERC and other authorities.

Get in touch

Enquiries

We welcome enquiries from investors, licensed distribution companies, contractors and technical partners.

Email info@interste.com.au Contact details