Management of Niger Delta Power Holding Company (NDPHC) Limited has explained that gas supply challenges, transmission constraints, and close to N600 billion debt being owed to the company by Nigeria Bulk Electricity Trading (NBET) and other bilateral entities are hindering its operations.
Managing Director of NDPHC, Engr Jennifer Adighije, who spoke via a statement in Abuja by Adesanya Adejokun, Technical Adviser (Media), also bemoaned the dismal uptake of electricity from the electricity market, saying this has significantly weighed down its operations.
She disclosed that the new management has worked assiduously to resuscitate five turbine units across Calabar, Omotosho, Sapele, and Ihovbor plants that were previously offline, now contributing an additional 625MW 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).
Over the years, the NIPP plants have been 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 start up 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 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. In certain cases, when the demand arises, there is inadequate dispatch corridor or wheeling capacity through the grid network.
In spite of these limitations, NDPHC continues to spearhead transmission grid expansion plans and distribution network interventions to enable power generation to be delivered to the last-mile underserved communities,” she stressed.
Since the inception of NIPP, NDPHC has invested over N500 billion in transmission projects—including transformers, transmission substations, switch gears, switch yards, transmission lines, line bay extensions, and several world-class projects currently being operated by the Transmission Company of Nigeria (TCN).
