NDPHC Adds 625MW To Grid Despite N600bn Debt
Despite grappling with a staggering N600bn debt owed by the Nigerian Bulk Electricity Trading (NBET) Plc and other bilateral entities, the Niger Delta Power Holding Company (NDPHC), said it has added 625 megawatts (MW) of electricity to the national grid.
The new capacity, the company explained was made possible by the successful resuscitation of five turbine units across the Calabar, Omotosho, Sapele, and Ihovbor power plants that were previously offline.
A statement issued in Abuja on Sunday by the Technical Adviser on Media to the NDPHC Managing Director,
Engr Jennifer Adighije, Adesanya Adejokun, quoted to have lamented that low offtake from the national electricity market, gas supply bottlenecks, and transmission constraints continue to severely limit the company’s ability to operate optimally.
“NDPHC currently has a mechanically available generation capacity of about 2,000MW that is significantly stranded due to transmission constraints, gas supply and gas transportation limitations in addition to dwindling offtake by the distribution companies (DisCos).
“Over the years, the NIPP plants are utilized by the system operator to carry out primary frequency response enabling power grid stability. These ancillary services ought to be monetized in line with the grid code and industry regulations.
” However, NIPP plants are ordered to start and shut down at the prerogative of the system operator without any form of compensation, thus leading to low utilization of capacity and operational stress on the generating turbine units.
“As you know, by the grid code, we are placed on restrictions for several reasons, from inadequate transmission grid availability – although this is being seriously addressed by the Honourable Minister of Power, Chief Bayo Adelabu- to low demand from the downstream electricity market.
“It is important to note that power generation is driven by demand, and therefore, if the demand isn’t made, the plants will not generate. In certain cases when the demand arises, there is inadequate dispatch corridor or wheeling capacity through the grid network.
“Despite these limitations, NDPHC continues to spearhead transmission grid expansion plan and distribution network interventions to enable power generation to be delivered to the last mile underserved communities”, she stressed.
Adighije continued: “Since the inception of NIPP, NDPHC has invested over N500bn in Transmission projects – Transformers, Transmission Sub-stations, switch gears, switch yards, transmission lines, line bay extensions, and several world-class projects currently being operated by the TCN”.
On Alaoji Power Plant, Adighije noted that a dispute over gas supply metering with the gas supplier led to the shutdown of the station but that it will become functional again before the end of this year as significant steps have been taken to restore the Gas Metering Station (GMS) to provide a lasting solution to gas losses to the plant.
She stated that the company had severally made attempts to enter into a Power Purchase Agreement (PPA) with the Nigerian Bulk Electricity Trading (NBET) to no avail, which would have improved NDPHC’s merit order in the dispatch priority schedule.
This has, according to her, impacted the company very negatively financially and further exacerbated the stranded capacity of the company.
“Currently, NDPHC is placed in the least priority bucket for dispatch despite its available daily dispatch capacity of about 2,000MW.
“By no small measure, NDPHC remains the largest fleet of generating turbine units in the sector, conversely, much of that capacity remains stranded due to these impediments that constrain the company from generating optimally”, she said.
Adighije said the company was leveraging on the Order issued by the Nigerian Electricity Regulatory Commission (NERC), on bilateral agreements to sell its stranded power and should soon conclude some deals with off-takers.
Adighije explained that the company currently has a generation capacity over demand from the National Grid, and is thus prioritizing direct supply to bilateral and eligible customers to commercialise its stranded capacity.
She also reiterated that the strategy of the new management seeks to unlock that stranded energy by dedicating significant portions of it now to eligible customers and bilateral trading arrangements under the July 25th order of the NERC directing generation companies to trade bilaterally with eligible customers and that should be able to address our stranded capacity”.
NDPHC Adds 625MW To Grid Despite N600bn Debt is first published on The Whistler Newspaper
