The Federal Government has said it would conclude sale of 10 brand new electricity generation plants built under the National Integrated Power Projects (NIPPs) by the Niger Delta Power Holding Company Limited (NDPHC) in accordance with its recently launched Economic Recovery and Growth Plan (ERGP).
The legislature additionally expressed that inside the three-year coordinated ERGP, it would survey the procedures utilized by the Central Bank of Nigeria (CBN) in the payment of its N213 billion Nigeria Power Advertise Adjustment Finance (NEMSF) to the power division.
There have been cases of unequal terms in the CBN payment of the assets by Electricity Distribution Companies (Discos), who claimed that the Apex bank had placed stringent conditions to make the fund very hard to get to.
Additionally, the administration attempted to auction the $5.7 billion plants to investors who were shortlisted after a focused offered prepare in 2014, yet the transactions were slowed down after reliable assaults on gas supply pipelines that have rendered the new power plants excess, and favored financial specialists' claims that the legislature had not satisfied its pre-exchange vow to guarantee continuous gas stream to the plants.
Taking after from this, the Government accordingly expressed that it would auction the plants on a one-by-one premise, beginning with three of the plants – 634 megawatts (MW) Calabar, 506MW Geregu and 513MW Omotosho control plants. In any case, the ERGP, which President Muhammadu Buhari, as of late launched in Abuja, demonstrated that conclusion of the NIPP privatization would be a piece of the few mediation endeavors in the power area that the administration's monetary recuperation program would seek after.
The report, which THISDAY inspected yesterday in Abuja, unveiled that within the power sector segment of the ERGP, the Government would focus to expand power generation by upgrading operational capacity, empowering little scale ventures, and seeking long-term capacity increment, notwithstanding enhancing the business viability of the legacy generation and distribution companies.
The Federal Government would, likewise in the ERGP, plan to reestablish lost gas supply through the Gas Flare Commercialization Program, create system towards end of gas infrastructure vandalism, finish significant gas infrastructure lines to plants and primary trunk lines to encourage gas supply for power generation, and also enhance the money related capacity of the Nigerian Bulk Electricity Trading Plc (NBET) to bolster the power market.
Government, as indicated by the monetary recuperation program would likewise reinforce the administration system and limit of segment organizations, present technique for capital market and saving money programs that guarantee all upstream industry administrators get paid for each agreement, and review the gas pricing structure to recoup every prudent cost as service improve and enhance willing engineers access to under-developed gas assets.
In the mean time, late records on power generation and supplies in the nation from the government has demonstrated that imperatives from gas supplies to power plants in the nation and in additional water management requirements have chipped off 2,785MW of generation volume from the system, leaving the nation with pretty much 3,653.8MW of power to disseminate over the 11 distribution networks.
According to the daily operational statistics from the Government, normal power generation as at 5th April 05, 2017, was 3,441MW. This however picked up to 3,653.8MW last Friday. The revealed gas and water limitations were 2,695MW and 90MW individually, while no requirements from the transmission lines were recorded. The government's record likewise expressed that the power sector lost an estimated N1.337 billion on 5th April, 2017 because of these imperatives.
Despite the generation constraints, the 11 Discos have legitimized their purposes behind dismissing loads sent to their systems by the Transmission Organization of Nigeria (TCN). A recent statement from the TCN indicates that the System Operator (SO) is left with no other alternative than to request that the DISCOs decrease generation to guarantee grid stability. The TCN equally denied that the test was that of transmission's wheeling limit which it said was 6,500MW.
Be that as it may, reacting to the charge, the Executive Director, Research and Advocacy of the Association of Nigerian Electricity Distributors (ANED), Mr. Sunday Oduntan, expressed that the TCN was frequently opposing the load allocation timetables of Discos by transmitting generated power to where the Discos have low distribution needs, and accordingly forgetting the high zones of power demand.
Oduntan told correspondents in Abuja that, "The issue is about wrong dumping of load where the Discos cannot recoup the cost by then as the power supply is not generally enough for every one of the clients under a specific Disco." He highlighted some challenges militating against TCN including out-of-date and obsolete equipment.
source : https://www.thisdaylive.com/index.php/2017/04/09/fg-to-revive-sale-of-10-nipp-plants-in-new-economic-plan/
