Power generation companies in Nigeria have decried the adverse impact of incessant grid collapse on their activities, which according to them has resulted in huge commercial and technical loss over the years.
The national grid experienced its latest disturbance last week thursday, making it the 11th collapse in 2024, affecting both business activities and livelihoods.
The federal government had attributed the repeated grid collapse, which have become an embarrassment to Nigeria, to many factors including aged and ageing facilities, lack of maintenance and requisite investment, as well as alleged sabotage by unarmed forces.
According to a document sighted by BusinessDay, both Kainji and Jebba hydro power plants recorded over N30.55 billion loss to grid failure from 2022 to 2024.
Among the impact of the grid collapse on the Hydro power infrastructure are destruction of equipment, misalignment of shaft, contamination of lubrication oil among others.
The major causes of the collapse include: grid instability and overload, transmission line overload, inadequate system protection, failure of equipment, aging infrastructure, among others.
“When the demand for electricity exceeds the capacity of the transmission lines, they can become overloaded. This may lead to overheating, equipment failure, or cascading outages.”
Commenting on the losses, Joy Ogaji, the chief executive officer of the Association of Power Generation Companies (APGC) who addressed journalists in Abuja during media training in Abuja on Thursday saod that the grid collapse poses a significant threat to Nigeria’s power sector, resulting in frequent disruptions, equipment damage, and substantial revenue losses for GenCos.
According to her, technically, grid collapse can cause catastrophic damage to generators, transformers, and other critical infrastructure, leading to prolonged downtime and costly repairs. Commercially, the impact is equally severe, as GenCos face reduced power sales, penalties for non-delivery (in bilateral and cross border trades), and increased operational expenses.
“The dwindling resources exacerbate these challenges, making it difficult for GenCos to maintain, repair, and replace damaged equipment, ultimately compromising the reliability and efficiency of the power supply.
Addressing these challenges requires coordinated efforts from government, regulatory bodies, and the power sector to improve infrastructure, enforce maintenance protocols, and ensure financial viability for GenCos.
“While we certainly need a huge jump in our electricity supply projection, it is imperative to preserve lives and equipment to sustain our rapid economic growth and meet the growing demand, we therefore need to make every effort to efficiently manage all stages of value chain with intentional focus on maximizing efficiency in the entire electricity chain,” she said.
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