Why Transcorp sells electricity outside Nigeria
TRANSCORP, a Nigerian power generation company, has revealed it is exporting excess electricity to neighbouring countries.
This move comes amid challenges within the domestic power sector, specifically the inability of local distribution companies to absorb all the power generated by Transcorp’s plants.
According to Peter Ikenga, the managing director of Transcorp Power, the company turned to the international market because the distribution companies (Discos) in Nigeria, often cannot take all the load generated from its plants.
Ikenga, however, stated that it may seem contradictory to sell electricity to the international market, but the company’s goal is to maximise the power its plants generate.
He said, “Due to some of the limitations you have on the grid, you have a scenario whereby, you have distribution companies from time to time unable to take that load, meaning that they are unable to take all the power that we generate and you cannot store electricity.”
On Monday, Businessday
reported that the national grid collapsed for the fifth time in 2024, throwing Nigerians into darkness once again.
The national grid, which serves as the backbone of Nigeria’s electricity system, has been plagued by a myriad of problems, ranging from outdated infrastructure to inadequate maintenance and funding constraints. These issues have contributed to the grid’s instability, leading to frequent collapses and widespread power outages across the country.
Industry data obtained by Businessday revealed that from the beginning of Nigeria’s democratic rule, the grid has collapsed 579 times, despite efforts and reforms to stabilise the grid.
Ikenga stated that due to the grid’s instability, Transcorp Power had to move generated power that could not be put on the grid to international markets with more capacities.
He said, “We started seeing some level of stranded capacity within the plant and that stranded capacity cannot be consumed locally. We had to look for a market outside the country.