• Thursday, April 25, 2024
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BusinessDay

Why government is recapitalising Discos

The   vice  President Professor Yemi Osinbajo has    said the significantly low distribution capacities  of  the  11 electricity  distribution  companies has been  responsible for the drive to recapitalise them.

The Vice president disclosed this at the commissioning of the New Abeokuta 2x60MVA132/3KV substation and associated transmission lines/sub-stations built by the Niger Delta Power Holding Company and handed over to Transmission Company of Nigeria at Abeokuta, Ogun State.

He said the distribution capacity in the 11Discos are significantly low, hovering at around 4,000 megawatts on average with a peak at about 5,400MW.

He said:  “So, despite the availability of about 8,000MW of generation and 7,000MW of transmission capacity, the lack of Disco infrastructure to absorb and deliver grid power to end-users has largely restricted generation to an average of about 4,000MW, and sometimes even falling below 4,000MW”.

Currently we have about 13,427Mw of installed capacity, while available capacity is now about 8,342Mw. According to him, this was achieved by efforts of the government and its private sector partners in rehabilitation and commissioning turbines at Shiroro, Egbin, Sapele, Gbarain, and Delta Power power stations.

Professor Yemi Osinbajo concluded that it is important for the government to improve the supply and quality of power to homes and businesses in Nigeria, saying “Before the end of this year, new generation capacities will also include, from Gbarain, an extra 115Mw, Kashimbila 40Mw, Afam V 240Mw, Gurara 30Mw, Dadinkowa 20Mw, and Kaduna 215Mw power stations

He said it has become evident that despite all the efforts that has been put into trying to expand the grid, the structure of the market today cannot deliver on the government’s promises to provide power for domestic and industrial use.

A substantial change of strategy is necessary. “There is clearly a need for a change of strategy. What we have done in the past has taken us to a point where there is clearly a change of strategy”.

He said the commissioning is an important part of the Federal Government efforts to improve the supply and quality of power to homes and businesses in Nigeria.

Some industry operators have said that it is important that the Federal Government  intervenes despite the fact that the substantially the power sector has been privatised, and therefore  lauded  government effort at ensuring that the distribution and transmission sectors  are strengthened.

Chiedu Ugbo, managing director and chief executive officer of the company in his address the Niger Delta Power Holding Company has about 4704 megawatts installed capacity but said sadly 4000MW of this installed capacity is stranded as its average daily dispatch by the System Operator (SO) is 700MW

The company he said currently contributes about 37% of Installed generation capacity to the grid.

According to him, NDPHC’s contribution to the Transmission grid system has transformed the hitherto radial 330Kv/132KV grid into a more robust grid system with significant provision of alternative power flow routes which now serve as redundancies and which has resulted in a more reliable and stable Nigeria grid. He said

Of note in these respects he explained are the commissioning of the over 220KM long 330KV Double Circuit (DC) lines providing alternative supply route into Abuja and the FCT from Geregu, through a new Lokoja substation, a new Gwagwalada substation into the existing TCN Katampe and Apo substations with several significant expansion works on existing substation developments along this route.

Between May 2015 and now under the administration of His Excellency President Buhari, about 30 NIPP Transmission projects inherited by the administration have been completed while over 70 Distribution Projects have also been completed across the 6 geopolitical zones of the country.

“In addition to the projects we are commissioning here today, we shall in the next few months be commissioning Awka 2X60MVA 132/33kV Substation in Anambra State, Adiabo 2X60MVA 132/33kV Substation in Cross River State. We shall also in the same period be commissioning Major Distribution Injection Substations at Misau and Darazu in Bauchi State, Kumo in Gombe State and Agaye in Niger State”.

 

OLUSOLA BELLO