Nigeria’s foremost power generation solutions provider, Geregu Power Plc, has signed a Memorandum of Understanding (MoU) with Siemens Energy to jointly develop solutions for capacity expansion at the Geregu 1 power plant.
The deal aims to triple Geregu’s total capacity from 435 to 1,200 megawatts (MW).
The aim is to ensure sustainable, resilient, and efficient power generation while safeguarding the longevity of assets, all aimed at supporting the growth and sustainability of the Nigeria Electricity Supply Industry (NESI).
“Geregu Power Plc and Siemens Energy have signed a Memorandum of Understanding to jointly develop solutions for capacity expansion at the Geregu power plant towards ensuring sustainable, resilient and efficient power generation,” a notice by Geregu Power Plc to the Nigerian Exchange Limited said.
“The initiative is to safeguard the longevity of assets aimed at supporting the growth and sustainability of the Nigeria Electricity Supply Industry (NESI),” the statement read in part.
The ceremony, which took place in Berlin on Wednesday, May 29, 2024, involved discussions and proposed implementation of various solutions.
These included upgrading the Geregu 1 Power plant from its current capacity of 435MW to 500MW, establishing combined cycle operations to generate an additional 200MW, and building new facilities using lower emission turbines with an added capacity of 500MW to create Geregu 3.
The initiative aims to increase power output, improve efficiency, reduce emissions, enhance flexibility, prolong equipment lifespan, and maximise shareholder value through increased earnings for Geregu Power PLC, bringing its overall nameplate capacity to 1200MW.
Femi Otedola’s vision transforms Geregu Power
According to a publication by billionaires Africa, Geregu Power Plc, founded in 2006, began supplying electricity to Nigeria’s national grid in 2007. Its 435-megawatt (MW) capacity power plant contributes to the nation’s energy needs.
In 2013, a consortium led by Femi Otedola’s Amperion Power Distribution Company Limited acquired Geregu Power. The consortium included Calvados Global Services Limited and State Grid Shanghai Municipal Electric Power Company, the world’s largest utility.
Under Otedola’s leadership, Amperion invested $94 million in a 2014 plant overhaul, boosting capacity from 414MW to 435MW and achieving full utilization. Otedola’s firm progressively increased its stake in Geregu, reaching full ownership in 2021. Geregu Power became the first electricity generation company to list on the Nigerian Exchange in October 2022.
Geregu Power’s financial success
With Femi Otedola at the helm, Geregu Power achieved impressive financial milestones, with revenue surpassing $90 million in 2023. The company continued its success in the first quarter of 2024, with revenue soaring to N50.43 billion ($40.38 million), marking a 254.38 percentincrease year-over-year.
Revenue growth was robust across all streams, with total energy sales revenue surging from N9.08 billion ($7.2 million) to N31 billion ($24.82 million). Capacity charge revenue also rose from N5.15 billion ($4.13 million) to N19.43 billion ($15.6 million). Operating profit saw a substantial increase from N5.79 billion ($4.65 million) to N21.76 billion ($17.47 million), while profit nearly quadrupled to N14.46 billion ($11.6 million) compared to the same period in 2023.
