The Federal Government approved Mainstream Energy Solutions Limited (MESL) as the preferred bidder for the concession of the Zungeru Hydroelectric Power Plant (ZHPP) in February, and an efficient operator could improve its fortunes.
As the operator of the plant, MESL will pay a fee of $70,000.25 per year for a period of 30 years through the National Council on Privatisation (NCP).
The Nigerian government’s strategic goal for the Zungeru Hydroelectric Power Plant is to increase electricity generation from various sources, particularly the hydroelectric potential abundant in Niger State.
MESL, a licensed power generation company founded in 2011, is a privately held company that owns two hydropower plants in Nigeria, Jebba and Kainji, which generate approximately 20 percent of the country’s power.
The Zungeru hydroelectric power plant is being developed by a joint venture between the Nigerian Federal Government and Chinese firms, China National Electric Engineering Company and Sinohydro Corporation.
Zungeru consists of a 230-meter-high reservoir, a powerhouse with four 175-MW turbines/generating units for a total rated output of 700 MW, a concrete-faced rockfill dam with a maximum height of approximately 113m, and a concrete spillway with four radial gates designed to pass the Probable Maximum Flood (PMF).
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It is the biggest hydropower project under construction in Nigeria and also one of the biggest power projects in Africa to avail itself of a preferential loan facility from the Export-Import Bank (Exim Bank) of China.
According to reports, the Zungeru hydroelectric power project will be completed and inaugurated in the first quarter of 2023. It is expected to provide power generation, flood protection, and water for mitigation.
It includes a roller-concrete compacted dam (90 meters in height and 1,090 meters in length), an intake tower and diversion tunnel, an underground powerhouse, a power transmission line, and an access road.
The 700-megawatt (MW) Zungeru hydropower plant is estimated to generate 2.64 billion kilowatt-hours (kWh) of electricity a year, which will meet close to 10 percent of Nigeria’s total domestic energy needs.
Meanwhile, at the Niger River hydroelectric power complex, the Kainji and Jebba power plants share resources and infrastructure with the Zungeru plant, such as transmission lines and grid infrastructure.
The Zungeru plant is expected to significantly increase Nigeria’s hydroelectric power generation capacity, which could have indirect impacts on the operations of the Kainji and Jebba power plants, as well as on the energy sector as a whole in Nigeria.
According to Lamu Audu, MD/CEO of MESL, the company’s main priority is focused on rapid capacity recovery and expansion.
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