Power sec­tor loses n460.3bn as gen­er­a­tion plum­mets

The Punch - - BUSINESS NEWS -

The es­ti­mated mone­tary loss in Nige­ria’s power sec­tor has risen to N460.3bn in 2018 alone.

The data ob­tained from the Fed­eral Min­istry of Power, Works and hous­ing in Abuja on Fri­day showed that be­tween Jan­uary 1 and No­vem­ber 8, 2018, the sec­tor lost N460.253bn.

The FMPWH ex­plained that the huge fi­nan­cial loss was due to in­suf­fi­cient gas dis­tri­bu­tion and trans­mis­sion in­fra­struc­ture lim­i­ta­tions as well as wa­ter re­serves is­sue.

It was also gath­ered from the Nige­ria Elec­tric­ity Sys­tem Op­er­a­tor that power gen­er­a­tion wob­bled per­sis­tently, as fig­ures from the NESO showed that it fluc­tu­ated be­tween 2,500 megawatts and 3,000MW for the most part of Oc­to­ber and sup­ply, No­vem­ber 2018.

It, how­ever, dropped to as low as 1,927.9MW on Oc­to­ber 29, 2018, while the data from the Sys­tem Op­er­a­tor put the coun­try’s power gen­er­a­tion at 3,437.1MW on No­vem­ber 8, 2018.

The SO said peak power gen­er­a­tion at­tained on No­vem­ber 8, 2018, was 4,964MW.

In an­other re­port, the Ad­vi­sory Power Team in the Of­fice of the Vi­cepres­i­dent stated that on No­vem­ber 8, 2018, the av­er­age quan­tum of en­ergy that was sent out to power users was 4,014Mwhour/hour, down by 49.03Mwh/h from the pre­vi­ous day.

The APT said 658.4MW of elec­tric­ity was not gen­er­ated due to un­avail­abil­ity of gas.

“0MW was not gen­er­ated due to un­avail­abil­ity of trans­mis­sion in­fra­struc­ture, while 2,002.8MW not was gen­er­ated due to high fre­quency re­sult­ing from the un­avail­abil­ity of dis­tri­bu­tion in­fra­struc­ture,” the APT stated in a re­port made avail­able to our cor­re­spon­dent.

It added, “Nil MW was recorded as losses due to wa­ter man­age­ment. The power sec­tor lost an es­ti­mated N1, 277,000,000 on No­vem­ber 8, 2018, due to in­suf­fi­cient gas sup­ply, dis­tri­bu­tion in­fra­struc­ture and trans­mis­sion in­fra­struc­ture.”

It said the dom­i­nant constraint on No­vem­ber 8, 2018, was due to high fre­quency re­sult­ing from the un­avail­abil­ity of dis­tri­bu­tion in­fra­struc­ture, con­strain­ing a to­tal of 2,002.8MW from be­ing avail­able on the grid.

The re­port stated that peak av­er­age en­ergy that was ever sent out to power users was 4,557Mwh/h on Fe­bru­ary 2, 2016.

It said the peak power gen­er­a­tion ever at­tained on the na­tional grid was 5,222MW on De­cem­ber 18, 2017.

“Es­ti­mated amount lost to in­suf­fi­cient gas sup­ply, dis­tri­bu­tion, trans­mis­sion and wa­ter re­serves to date in 2018 is N460, 253, 000, 000,” the re­port added.

Power gen­er­a­tion has been largely un­sta­ble since the be­gin­ning of this year.

The Nige­rian Elec­tric­ity Reg­u­la­tory Com­mis­sion re­cently stated that dur­ing the first quar­ter of 2018, the to­tal elec­tric­ity gen­er­ated was 8,511,481MWH, two per cent less than the gen­er­a­tion recorded in the last quar­ter of 2017 de­spite the in­crease in avail­able gen­er­a­tion units.

NERC stated that the quar­terly in­dus­try’s daily gen­er­a­tion peak of 5,047MW recorded on Fe­bru­ary 14, 2018, was also less than that of the pre­ced­ing quar­ter.

“With the de­crease in gen­er­a­tion, not sur­pris­ingly, the av­er­age util­i­sa­tion rate of the to­tal avail­able gen­er­a­tion ca­pac­ity de­clined by 1.1 per cent from 54.4 per cent recorded in the last quar­ter of 2017,” NERC stated.

It added, “Gas constraint is largely re­spon­si­ble for stranded ca­pac­ity that led to the de­cline in gen­er­a­tion. Other fac­tors lim­it­ing gen­er­a­tion in­clude the trans­mis­sion line and dis­tri­bu­tion net­works lim­i­ta­tions and wa­ter man­age­ment.”

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