Electric Power Generation Companies (GenCos) under the National Integrated Power Project (NIPP) have over 50 percent of their power generation stranded due to the poor distribution network to wheel it to consumers, Daily Trust has revealed.

The NIPPs parent company,  Niger Delta Power Holding Company (NDPHC) which built, operates and maintains the 10 NIPP GenCos, have a combined design capacity of 5,453 megawatts (MW) with 4,774MW installed capacity.

… privatization underway as gas supply hiccups resolved

NDPHC said it has drastically combated gas constraints, but it is now facing the lack of adequate distribution facilities and networks for the 11 Distribution Companies (DisCos) to take more electricity to customers in spite of the huge generation capability and the incessant outages being recorded in Nigeria.

The Managing Director of the NDPHC, Mr. Chiedu Ugbo confirmed this last week in Abuja when he said gas supply to the NIPP GenCos improved due to the N701bn PAG intervention.

“The introduction of the N701bn Payment Assurance Guarantee (PAG) by the federal government since April this year, operators of the NIPP GenCos along with other power stations said they now get up to 80 percent of their monthly invoices for January 2017 till 2019.”

The Nigeria Bulk Electricity Trading Plc (NBET) in its recent publication said it has paid about 50 percent of such fund in addition to the 30 percent remittances from the DisCos for GenCos’ invoices from January to October 2017, ensuring gas suppliers are paid adequately for the last 10 months.

Statistics on electricity generation obtained from the Transmission Company of Nigeria (TCN) yesterday showed the status of the operational NIPP plants as at last Thursday when the national grid reached a peak generation of 4,293MW with 6,083MW available generation capacity.

After seven years, the first two, 434MW Geregu Generation Company (GenCo) in Kogi state and 513MW Omotosho GenCo in Ondo state were commissioned in October 2013. Six others were commissioned and began operation between 2014 and 2016.

Breakdown of the TCN report showed that the 434MW Geregu GenCo generated only 100MW which was less than half of its capacity; Alaoji GenCo could do about 540MW but it was down during the period; Sapele GenCo generated 174MW but has the capacity for 451MW; Benin GenCo generated 86MW but has 451MW installed capacity.

The others are 562MW Calabar GenCo which generated 287MW; Omotosho GenCo has 451MW capacity but generated 103MW; Olorunsogo GenCo has up to 676MW capacity but only produced 153MW, and Gbarain GenCo produced 94MW from its 225MW capacity.

The records, however, showed that the generation was below 50 percent of their installed capacities while two GenCos – 338MW Egbema NIPP and 225MW Omoku NIPP, are still under construction.

The Minister of Power, Works and Housing, Mr. Babatunde Fashola confirmed the inability of many GenCos to generate higher electricity because they are now limited by the ability of the DisCos to take more power to customers, and not the issue of gas constraints which had prevailed before May 2017.

Fashola who spoke at a power sector operators’ meeting at Geregu near Lokoja specifically said: “When I visited in 2016, only one turbine was running in each of Geregu I and II plants because of no gas out of six turbines. Today, all the three turbines in each are running because there is now some gas.”

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