How Azura outperformed energy producers in October 2024

A new report from the Nigerian Electricity Regulatory Commission (NERC) named Azura Independent Power Plant (IPP) the best-performing energy producer in October 2024.

Based on the Plant Availability Factor and Load Factor, the findings reveal Azura’s dominance and highlight critical challenges in Nigeria’s energy sector.

Plant availability factor

The Plant Availability Factor measures how consistently a power plant generates electricity relative to its capacity. In October 2024, Azura IPP demonstrated a remarkable availability factor of 97 percent, generating 449 MW out of its 461 MW capacity. This metric underscores Azura’s reliability as a cornerstone of Nigeria’s energy supply.

In stark contrast, Afam VI, with a capacity of 650 MW, recorded a dismal availability factor of 27 percent, producing just 174 MW. Aging infrastructure, fuel shortages, and maintenance challenges were key contributors to this underperformance.

Other plants also struggled, with Egbin ST and Delta GS posting availability factors of 46 percent and 41 percent, respectively. By comparison, hydroelectric plants such as Jebba and Shiroro performed moderately well, achieving availability factors of 75 percent and 64 percent, respectively. These figures suggest hydropower could play a more stable role in Nigeria’s energy sector if given the necessary investments and policy support.

Efficiency in Load Utilisation

The Load Factor, which measures how much of a plant’s potential output is actually used, provided further insights into performance efficiency. While Azura IPP maintained a solid load factor of 85 percent, hydroelectric plants like Jebba and Shiroro excelled, achieving load factors of 89 percent and 87 percent, respectively.

Afam VI, despite its low availability, delivered a surprising load factor of 87 percent, indicating strong operational efficiency when it was operational. However, plants like Egbin ST, with a load factor of 73 percent, highlighted room for improvement in converting capacity into usable output.

Okpai and Delta GS also posted respectable load factors of 81 percent and 82 percentr, respectively, though their overall contributions were hampered by availability issues.

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Key Takeaways from the Report

Performance Disparities

While Azura IPP and hydroelectric plants like Jebba are operating with high efficiency, facilities like Afam VI and Delta GS remain underutilised due to aging infrastructure and operational challenges.

Upgrades Needed

Addressing disparities in both availability and load factors across Nigeria’s power plants is critical to stabilizing electricity supply and meeting rising demand.

Investment in Maintenance

Targeted investments in maintenance and upgrades, particularly for underperforming plants, will enhance the reliability of Nigeria’s power infrastructure.

Focus on Renewable Energy

The performance of hydroelectric plants signals the need for increased focus on renewable energy sources to ensure stability and sustainability.

What’s Next for Nigeria’s Power Sector?

To replicate Azura’s success across the board, Nigeria must prioritise investments in infrastructure, enhance operational efficiency, and tackle long-standing challenges such as fuel supply inconsistencies and energy theft. Improving performance metrics like availability and load factors will help reduce blackouts, stabilise electricity supply, and support the nation’s economic growth.

The NERC report not only underscores Azura’s pivotal role but also highlights the potential for other plants to rise to the challenge with the right strategies in place. Achieving this will require a combination of government policies, private sector investments, and technological innovations.

As Nigeria grapples with an increasing demand for electricity, the lessons from Azura IPP’s success offer a blueprint for a more reliable and efficient energy future.