Owed N94bn by electricity market
Discos to submit 2013 – 2015 audited accounts to NERC
The Niger Delta Power Holding Company (NDPHC), operators of the National Integrated Power Project (NIPP), has presented the status report on its generation, distribution and transmission projects, saying eight out of 10 NIPP power plants are ready to generate over 2,000 megawatts as soon as vandalised gas processing projects are completed by the associated nominated gas suppliers.
The company has also stated that though power generation is often disrupted by acts of vandalism, it does not offer such incidences as excuses as it has continued to operate these power plants in the interest of the Nigerian economy, despite undesirable security challenges and an accumulated debt of over N94 billion owed it by the electricity market.
This is coming as the 11 electricity distribution companies have agreed to submit their 2013, 2014 and 2015 audited accounts to the Nigerian Electricity Regulatory Commission (NERC).
In the status report sent to THISDAY, NDPHC listed completed power plants to include 750MW Olorunsogo II in Ogun State, 450MW Sapele, 434MW Geregu II in Kogi State, 450MW Omotosho II in Ondo State, 450MW Ihovbor in Edo State, 450MW Alaoji in Abia State, 563MW Calabar and 225MW Gbarain in Bayelsa State.
The company also listed 225MW Omoku in Rivers State, 338MW Egbema in Imo State and 530MW second phase of Alaoji as imminently completed, stressing that the completed power plants have been operated with private sector orientation and supported by Long Term Service Agreements (LTSA) in line with international best practice.
The report noted that under condition of transmission and gas challenge, the profitability of the plants is constrained but added that these are short term developmental challenges, which the NDPHC is working to mitigate by divestment to the private sector either as privatized entities or under practical Operations and Maintenance (O&M) contracts.
“Despite the inability of some international oil companies (IOCs) to deliver gas to NIPP plants on schedule, the management has been proactive in securing alternative gas from Accugas Limited which clearly is outside the aggregation framework,” the report added.
According to the report, the eight of the ten power plants in the NIPP portfolio, along with associated gas transmission metering/receiving infrastructure projects, have been inaugurated and connected to the national grid contributing over 22,000,000 kilowatt hour (kWHr) of energy daily.
In the area of power transmission, the company stated that it has completed 2,194 kilometres of 330kV transmission lines and 809km of 132kV transmission lines, representing an increase of 46 per cent and 13 per cent, respectively over the pre-NIPP status of grid infrastructure.
“A total of 10 new 330/132kV substations and seven new 132/33kV substations have also been completed with several other existing substations significantly expanded thereby adding 5,590MVA and 3,313MVA capacity to the national grid – the statistics of NIPP contribution to overall transmission system with transformation capacity progressively increasing each day as the balance of the projects are being delivered.
The current black out being experienced in the Eko area of Lagos is to grant NIPP outage to connect completed projects at both 330kV and 132kV levels at Alagbon and Lekki NIPP 330MVA Substations which in a few weeks would significantly improve power supply to Lagos axis. Similar projects are being primed for inauguration to facilitate power evacuation from NIPP’s Calabar and Alaoji Power Plants to the South-south, South-east and North-west of the country, among many other beneficiary states,” the report explained.
With regards to distribution infrastructure, the company disclosed that it has constructed and inauguration over 350 injection substations with a combined capacity of 3,540MW across the country.
NDPHC has also constructed a total of 2,600km of 11kV and 1,700km of 33kv distribution lines for improving access to electricity and quality of power supply to consumers.
The company has also installed 25,900 completely self-protected (CSP) transformers all over the country thereby significantly reducing technical losses.
“Under the NIPP programme, the capacity of 33/0.415kV and 11/0.415kV has been increased by 26 per cent. The NIPP is designed to increase the number of 33/0.415kV & 11/0.415kV substations by 163 per cent all the projects are nearing completion,” the report said.
The report described the NIPP as the largest single intervention in power infrastructure in Africa but added that the implementation has not been without challenges, which includes community restiveness, security situation in the Niger Delta and disruptions arising from recurring probes by the National Assembly.
“We trust that this oversight function by the legislators is often occasioned by the imperative of obtaining informed knowledge and gathering of valuable data – albeit with undesirable effect of causing disruptions in operations and adversely impacting on the speed of project delivery. Other challenges have been the unintended side effects of the power sector reform and a misalignment between the NIPP and the implementation schedule of gas projects under the NNPC and its subsidiaries.
Such challenges are not unexpected in the process of executing multi-billion dollar projects in emerging economies in which there are significant external risks to project implementation. With an overall level of completion of projects in excess of 80 per cent, the balance of which are on the verge of completion, the NDPHC has definitely delivered on its mandate of providing robust power infrastructure for the nation,” the report added.
In a related development, the 11 Discos at the fifth monthly meeting of the operators held on Monday at Shiroro Hydroelectric Plant, in Niger State, agreed to submit their audited accounts from 2013 to 2015 to NERC to enhance the monitoring of transparency in the industry.
According to the communiqué released at the end of the meeting, Discos also agreed to take ownership of abandoned transformers and substations in their domains to ensure that they are energised to increase availability of power supply.
The communiqué also revealed that NERC would collaborate with Nigerian Electricity Management Services Agency (NEMSA) and the Nigerian Bulk Electricity Trader (NBET)and the Market Operator (TCN/MO) to implement ranking criteria in order to assess the safety and payment performance of Discos.
“As part of efforts to eliminate estimated billing of electricity consumers, the Distribution Companies agreed to redouble their metering roll out plans in a progressive and sustainable manner by raising additional funding for this purpose. To this end, Distribution Companies are to publicise details of their metering progress at regular intervals. The Transmission Company of Nigeria (TCN) announced progress on 106critical projects identified by distribution and generation companies to improve the transmission of power to Nigerian households.Included in these projects arerepairs of the Owerri/Ahoada/Yenagoaline which now connects the newly commissioned Gbarain plant to the grid. It also announced completion of repairs to transmission projects in Ajah, Akoka, Afam and Kainji,” said the communique.