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Home News

Why Nigeria Not Benefitting From 6,500 Megawatts

by ReportersAtLarge
March 16, 2016
in News
Reading Time: 4 mins read
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Babatunde-raji-fashola

Minister of Power, Works and Housing, Babatunde Raji Fashola

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THE rejection of load allocations from energy producing crops by some electrical energy distribution firms is among the components stopping the nation from totally benefiting from the 6,500 megawatts era capability of the present energy crops.

Our correspondent gathered that some energy plant items had been being shut because of excessive frequency occasioned by the shortcoming of the distribution firms to select their load allocations.

For occasion, the nation misplaced about 2,821.5MW of electrical energy era on Monday partly because of the rejection of masses by the Discos, it was solely gathered from prime business sources.

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The nation’s electrical energy era as of 6.00am on Monday stood at 3,548.7MW, whereas the mixed era capability of the ability crops was put at 6,370.2MW.

Some of the crops affected by the load rejection or low load demand had been Shiroro, Jebba, Egbin, Okpai and Afam VI.

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Others are crops below the National Integrated Power Project, together with Alaoji, Odukpani and Ihovbor.

Shiroro and Jebba noticed their era ranges scale back to 200MW and 260MW, in comparison with capacities of 300MW and 341MW, respectively. Odukpani generated 60.1MW as a substitute of its capability of 360MW; Egbin, 820MW (880MW); Alaoji, 51.5MW (117MW); Ihovbor, 78.4Mw (109MW); Okpai, 282MW (366MW); and Afam VI, 378MW (555MW).

The General Secretary, National Union of Electricity Employees, Mr Joe Ajaero, had claimed in a press release on Monday that the actual saboteurs of the ability sector had been those that refused allocations from the nationwide grid for onward distribution to customers.

A former prime govt in one of many energy companies defined to our correspondent {that a} distribution firm may resolve to reject load because of the low-income era from a phase of its buyer base.

The Managing Director and Chief Executive Officer, Eko Electricity Distribution Company, Mr Oladele Amoda, instructed our correspondent in a phone interview that load rejection could possibly be because of capability points between the transmission and distribution networks.

He mentioned, “In some cases, there is not enough transmission equipment capacity to wheel power to the Discos. Sometimes, the Discos also do have issues; that is when there is a powerful wind, which, sometimes, leads to the tripping of the breaker. But it doesn’t take time before that is restored.

“Everybody knows that the weakest link in the power value chain is transmission. So, the blame cannot be put solely on the Discos.”

According to Amoda, the nation’s transmission community can not wheel greater than 6,000MW, whereas the distribution networks nationwide can take greater than 10,000MW.

“At Eko Disco, we are not rejecting load. We are not even getting up to our allocated percentage because of constraints on the transmission equipment,” he mentioned, including that the corporate had spent greater than N11bn on community rehabilitation and reinforcement, amongst others.

Amoda mentioned the federal government was engaged on enhancing the transmission capability, noting that the Transmission Company of Nigeria had been starved of funds for a really very long time.

“The government is looking into how to quickly strengthen it financially and with all the provisions that it will require to quickly ramp up its capacity,” he acknowledged.

The Managing Director/Chief Executive Officer, Nigerian Bulk Electricity Trading Plc, Mr Rumundaka Wonodi, mentioned, “When the Discos reject load allocation, the question is why are they rejecting it? It could be that their system is weak, which is why we keep talking about the need for investment.

“When this (load rejection) happens, it has an effect all through the value chain because generation companies cannot generate power and maybe they have ‘take or pay’ obligation on their gas supply; so, they have to pay for gas that they did not utilise at that time.”

The Chairman, Egbin Power Plc, Mr Kola Adesina, mentioned the discussion that the Discos had been rejecting allocation was a sign that there was a serious drawback way more vital than the frequency and strain of fuel.

“There is no justification for somebody to reject power. You need the power to make money. You need money to be able to pay your loan, to be able to continue to service the system. So, nobody will naturally want to do that,” he mentioned.

The spokesperson for the Kano Electricity Distribution Company, Mr. Muhammed Kandi, mentioned, “In Kano Disco, we do not drop a load. In fact, we don’t get enough allocation; so why should we even drop load in the first place?”

He defined that the corporate solely obtained about 260MW on Tuesday morning, in comparison with a most vitality demand of 600MW.

The Acting Chief Executive Officer, Nigerian Electricity Regulatory Commission, Mr Anthony Akah, mentioned, “Clearly, the issue of load rejection has been addressed by the commission. Under the new regime, that is the Transitional Electricity Market, the distribution companies can no longer reject a load that is within the allocation level that they are supposed to get.

“If it is due to the constraint of the distribution companies, they will be penalised for that. If it is the transmission company, it will also have to be penalised. That essentially has been taken care of, unless there are other reasons behind why it happened.”

The Chief Executive Officer, Association of Nigerian Electricity Distributors, Mr Azu Obiaya, mentioned, “It is irrational that any one of these Discos will reject load right now because they desperately need the power to, first of all, meet their revenue requirements as well as distribute to their customers.”

Tags: babatunde raji fasholaelectricity distribution companiesNigeriapower generating plants
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