Power sector loses N355bn
NIGERIA’S VAST GAS reserves of over 192 trillion standard cubic feet (tscf ) are still unable to sufficiently meet the energy needs of its citizens as power plants still lack adequate gas to run turbines, giving rise to an estimated N355.502 billion loss in
NIGERIA’S VAST GAS reserves of over 192 trillion standard cubic feet (tscf) are still unable to sufficiently meet the energy needs of its citizens as power plants still lack adequate gas to run turbines, giving rise to an estimated N355.502 billion loss in revenue in 11 months.
According to data obtained by business a.m. from Nigerian Electricity Supply Industry Statistics (NESISTATS), the shortage of gas, grid unreliability and distribution limitations limited the average volume of electricity generated and distributed daily to Nigerian homes and offices to 3780 megawatts (MW) per day, while an average of 3041 megawatts (MW) were constrained from getting to consumers by these limitations.
NESI, which put the average daily revenue loss at N1.1 billion, said gas constraint remained one of the major challenges facing the electricity sector.
The power sector is finding it difficult to access more loans from Nigerian banks due to their inability to meet the payment obligations for previous debts.
The situation will also affect the capacity of the power firms to improve on elec- tricity supply to consumers for domestic and industrial uses.
Statistics from NESI showed that Afam VI, Geregu NIPP, Alaoji National Integrated Power Project (NIPP), Olorunsogo Gas, Odukpani NIPP, Okpai, Ibom Power, Omotosho NIPP, Ihovbor NIPP, Rivers NIPP and Gbarain power plants all had gas constraints, in the period under review.
On another hand, the nation’s power grid also suffered a total collapse on December 21, for the first time in three months, increasing the number of collapses repartial so far this year to 12, though one was partial while the rest were total.
The total collapses occurred in January (five), February (one), June (one), July (one), September (two) and December (one), while one partial collapse was recorded in April.
The grid has continued to suffer system collapse over the years amid a lack of spinning reserve that is meant to forestall such occurrences, and according to the Nigerian Electricity Regulatory Commission (NERC), a total system collapse means total blackout nationwide, while system collapse is a failure of a section of the grid.
The country currently generates most of its electricity from gas-fired power plants, while the output from hydropower plants makes up about 30 percent of the total. NERC, in its latest quarterly report, had said the power sector recorded a significant improvement in the stability of the grid network during the second quarter of this year.
According to the report, the improvement in the grid stability achieved in the quarter was attributed to the commission’s and the country’s transmission company, Transmission Company of Nigeria (TCN) commitment to ensuring stable electricity supply.
It said that “this is done through tighter enforcement and adherence to the provisions of the grid code which mandates free governor control at grid-connected power plants.
The commission also reiterated its commitment to increase grid stability through “monitoring and supervision efforts in order to ensure strict compliance to the commission’s directives that generators should be on free governor and frequency control mode in line with the provisions of the subsisting rules in the industry.”