The Managing Director of Niger Delta Power Holding Company (NDPHC) Limited, Engr Jennifer Adighije, has stated that gas supply challenges, transmission constraints as well as close to N600 billion debt being owed the company by the Nigeria Bulk Electricity Trading (NBET) and other bilateral entities are hindering the company’s operations.
In a statement yesterday, Adighije said this is affecting the company to utilise the 2,000 megawatts of electricity from all generation plants it operates.
While lamenting the dismal uptake of electricity from the electricity market, she said this is significantly weighing down its operations.
She disclosed that the new management has worked assiduously to resuscitate five turbine units across Calabar, Omotosho, Sapele, Ihovbor plants that were erstwhile offline, which now contribute additional 625MW megawatts to the national grid.
“NDPHC currently has mechanically available generation capacity of about 2,000MW that is significantly stranded due to transmission constraints, gas supply and gas transportation limitations in addition to dwindling offtake by the distribution companies (DisCos),” she said.
She said over the years, the National Integrated Power Projects (NIPP) plants are utilised by the system operator to carry out primary frequency response enabling power grid stability.
“These ancillary services ought to be monetised in line with the grid code and industry regulations. However, NIPP plants are ordered to startup and shut down at the prerogative of the system operator without any form of compensation thus leading to low utilisation of capacity and operational stress on the generating turbine units.
“As you know, in accordance with the grid code, we are placed on restrictions for a number of reasons, from inadequate transmission grid availability, although this is being seriously addressed by the Honourable Minister of Power, Chief Bayo Adelabu, to low demand from the downstream electricity market. It is important to note that power generation is driven by demand, and therefore, if the demand isn’t made, the plants will not generate,” she said.
She added that in spite of these limitations, NDPHC continues to spearhead the transmission grid expansion plan and distribution network interventions to enable power generation to be delivered to the last-mile underserved communities.
“Since inception of NIPP, NDPHC has invested over 500 billion naira in transmission projects – transformers, transmission substations, switch gears, switch yards, transmission lines, line bay extensions and several world-class projects currently being operated by the TCN.
On Alaoji Power Plant, Adighije noted that dispute over gas supply metering with the gas supplier led to the shutdown of the station but that it will become functional again before the end of this year as significant steps have been taken to restore the Gas Metering Station (GMS) to provide a lasting solution to gas losses to the plant.
