Constraints Result in Power Sector Losses of N201bn in H1 2018


Chineme Okafor in Abuja

An operational report on how Nigeria’s privatised electricity market fared within the six months of the year has shown that the sector lost N201,298,000,000 of the revenue that could have come to it.

Released in Abuja by the Advisory Power Team situated within the Office of the Vice President, Yemi Osinbajo, the report pointed to repeat shortfalls in gas supply to power generation companies (Gencos), inability of the Transmission Company of Nigeria (TCN) to effectively transport electricity from Gencos, as well as operational limitations on the part of the power distribution companies (Discos) as key reasons for such huge revenue deficit.

It also listed constraints with water management at the hydropower Gencos as another reason why the sector recorded the shortfall.
“Estimated amount lost to insufficient gas supply, distribution, transmission and water reserves to date in 2018 – N201, 298,000,000,” said the report which THISDAY obtained from the website of the Power Advisory Team.

On the average, it indicated that the sector lost N1.266 billion every day within this period. It also noted that average power constrained for that period was 2,688 megawatts (MW) daily considering that 419,386MW could not be generated cumulatively within the period. Similarly, an average of 3,882MW was generated every day, being that about 605,630MW was cumulatively generated within the 156-day period.

Specifically, it stated for instance that: “On June 4, 2018, average power sent out was 4,015MWh/hour, up by 10.75MWh/h from the previous day; 2. 1,851MW was not generated due to unavailability of gas; 230.6MW was not generated due to unavailability of transmission infrastructure, while 1098.8MW was not generated due to high frequency resulting from unavailability of distribution infrastructure; and 365MW was recorded as losses due to water management.

“The power sector lost an estimated N1, 702,000,000 (One billion seven hundred and two million naira) on June 5, 2018, due to insufficient gas supply, distribution infrastructure and transmission infrastructure.

“The dominant constraint on June 5 2018 remained unavailability of gas – constraining a total of 1,851MW from being available on the grid,” it added.

The report equally noted that peak power generation for June 5, 2018, was 4,302MW, adding that so far, Nigeria has recorded a peak power generation of 5,222MW achieved on December 18, 2017.

According to it, about 110,254 million standard cubic feet (mscuf) of gas was supplied to the power sector within the period, indicating an average daily gas supply of 706.7mscuf/d.