Mainstream Seeks Improved FG’s Support for Gencos
The concessionaire of the Kainji and Jebba hydro power plants, Mainstream Energy Solutions Limited has expressed fears over what could become of its operations and that of other power generation companies (Gencos) in Nigeria when disbursement from the N701 billion guarantee fund the federal government provided to support the operations of the Gencos eventually runs dry.
To this end, it has asked the federal government to quickly move to restore stability of operations in the country’s electricity market.
Speaking recently at the August edition of the monthly power sector operators meeting in Minna, Niger State, the Managing Director of Mainstream, Mr. Lamu Audu, urged the government to continue supporting the Gencos to expand their operations.
“We must not forget the various initiatives and interventions of the federal government to ensure that the power sector remains viable and we must continue to ask ourselves how we can contribute our own quota in ensuring that the power sector survives.
“As we all know, the most recent intervention in the form of the N701 billion has a life span that would terminate in December 2019.
“Beyond that, we are apprehensive with respect to the future of the industry. On this note, we would like to appeal and pray that the minister continues to use his office to ensure that there is stability in the sector to aid expansion and growth that guarantees electricity for Nigerians,” Audu said.
He explained the company took over the hydro plants in November 2013, when their total generation capacity was at 582 megawatts (MW), and at which time it promised to restore them to their nameplate capacity of 1,338.4MW.
“Today, despite the serious challenges facing the electricity supply industry, you will be glad to know that we are at 69 per cent recovery and our plants granting favourable grid and reservoir conditions, are now available with a generation capacity of 922MW,” he said.
He also stated, “Favourable conditions aside, we continue to forge ahead to achieve a 100 per cent recovery by implementing a very robust capacity and expansion program. Further, additional capacities are being recovered with the ongoing rehabilitation of the 80MW Unit 1G7 at Kainji, which contract was awarded to GE and would be completed in the fourth quarter of 2019.
“We are also in the process of awarding the contract for the recovery of additional capacity of 96.4MW to Marubeni for the rehabilitation of Unit 2G6 at Jebba, which would commence in 2019.
“Plans are also under way for a reservoir and capacity expansion at the Kainji hydro power plant to increase installed capacity by 200MW from 760MW to 960MW.”
According to him, Main- stream has equally contributed to the development of the West African regional electricity market framework – West African Power Pool (WAPP) and would continue to work within the region to guarantee power supply.
He explained the company also has made the most of the eligible customer regulation the government recently approved and had signed supply agreements with companies.
“We have so far entered into power purchase agreements with five eligible