NDPHC Moves to Free 200MW of Its Stranded Power by December

•Adighije visits new NISO chief, seeks regulatory support

Emmanuel Addeh in Abuja

The Niger Delta Power Holding Company Plc (NDPHC) yesterday said it was planning to free and commercialise about 200mw of its roughly 2,000mw stranded electricity by the end of this year, with the signing of new Power Purchase Agreements (PPAs) with eligible off-takers and traders.

Managing Director of the NDPHC, Jennifer Adighije, disclosed this during a visit to the newly established Nigerian Independent System Operator (NISO) in Abuja, where she led a delegation of senior executives to strengthen collaboration and discuss sector challenges with the leadership of the organisation.

Speaking at the event, she stated that the agreements which are currently awaiting regulatory approval are part of a broader strategy to unlock stranded capacity, improve liquidity, and ensure commercial sustainability of the government-owned generation company.

She said: “…Now that we’re also improving our mechanical availability, we can significantly improve on commercialisation of our stranded electricity. The Electricity Act (EA) has also empowered us now to go into successful bilaterals with bankable customers, off-takers and traders.

“And I can tell you that we have already signed some PPAs with some traders and some off-takers, which are before the regulator for approval. I’m sure you know that for us to activate those transactions, we will need to get the approval of the regulator, which is already ongoing.

“So before the end of the year, we should be able to commercialise about 200mw of our stranded electricity, which are (awaiting) approvals before the Nigerian Electricity Regulatory Commission (NERC) as we speak.”

She noted that the company’s recent improvement in plant availability has positioned NDPHC to ramp up supply and meet off-taker demands once regulatory greenlight is received, adding that the revival of key assets, including the Omotosho and Alaoji power plants, will further enhance generation capacity.

Adighije appealed to NISO to support improved dispatch levels, especially given the company’s absence of a formal PPA with the Nigeria Bulk Electricity Trading Plc (NBET), emphasising that without stable offtake arrangements, much of NDPHC’s available capacity will remain underutilised.

Stressing that the company is still heavily owed, only able to earn about 30 per cent of its  invoices that are presented, Adighije stated that once the NDPHC is able to unlock some of its ongoing commercial transactions and its cash flow improves, all its obligations to partners and stakeholders will be met fully.

Adighije noted that part of the reasons for the visit was to extend a handshake to the new management of the new organisation and to express the company’s readiness to work with NISO.

“We’re here to express our readiness to work with you to achieve success in office. We know that the sector is rapidly evolving, driven by the nuances of the passing and implementation of the Electricity Act, of which Gencos have a very pivotal role to play.

“NDPHC being essentially the backbone of the power sector as the government-owned generation utility company, it’s actually imperative that we are able to establish and reinforce our working relationship, which is why we are here,” Adighije added.

In his remarks, the NISO MD, Abdu Mohammed, commended NDPHC’s operational improvements, reaffirming that the independent system operator was working to optimise dispatch and enhance participation of all generation companies in the market, regardless of ownership status.

Mohammed also encouraged NDPHC to explore opportunities in international electricity trade through regional interconnection projects being developed with the West African Power Pool (WAPP), noting that test synchronisation exercises are expected by September.

“A lot has been done. A lot has been achieved. And I believe you can still achieve more. You are the largest utility, I can say, in Nigeria so far. With a minimum of 10 power stations and a  minimum of 5,000mw installed capacity.

“So you can imagine that if we could only optimise this capacity and capabilities you have, Nigeria would be better for it. And I believe that with your leadership and those that are supporting you with the pedigree they have, we should be able to optimise these huge assets owned by the federal government.

“ It will go a very long way in supporting the power base of this country. It’s one of the cheapest forms of generation actually, “ Mohammed stated.

Also speaking, the Chief Operating Officer (COO) of Geregu Power Plant, Wasiu Olayiwola, highlighted the operational challenges faced by government-owned plants. He stressed the need for regulatory support, particularly around system stability requirements like the free governor mode and SCADA integration.

“Frequent start and stop operations affect our maintenance cycle and escalate costs. As government operators, we face slower procurement processes than our private counterparts. We ask for fairness and flexibility to keep our plants stable and competitive,” he added.