The Niger Delta Power Holding Company (NDPHC) has sought for presidential intervention for fund in the ongoing power projects in order to settle debts owed by Generation Companies (GenCos). This is to enhance power supply across the country.
Notwithstanding, the Federal Government is currently indebted to GenCos about N4 trillion which has put the generation companies in limbo.
However, the management of NDPHC has raised alarm over a N600 billion debt owed by the Nigerian Bulk Electricity Trading (NBET) Plc, saying it is severely hindering the company’s operations.
This was disclosed by NDPHC Managing Director/CEO Jennifer Adighije, through a statement issued by her Technical Adviser (Media), Mr. Adesanya Adejokun.
The MD of NDPHC highlighted several other operational challenges, including gas supply issues, transmission constraints, and difficulties with bilateral entities.
Despite these hurdles, she noted that the new management had successfully revived five previously idle turbine units across the Calabar, Omotosho, Sapele, and Ihovbor power plants, adding 625 megawatts (MW) to the national grid.
According to Adighijie, “NDPHC currently has mechanically available generation capacity of about 2,000MW that is significantly stranded due to transmission constraints, gas supply and gas transportation limitations.
“In addition to the dwindling offtake by the Electricity Distribution Companies (DisCos).”
She explained that over the years, the National Integrated Power Projects (NIPP) plants under NDPHC had been used by the System Operator to provide primary frequency response, thereby supporting grid stability. However, these ancillary services, she said, are yet to be monetised in line with the Grid Code and industry regulations.
Adighijie pointed out that the company faces dispatch restrictions due to both limited grid availability and low market demand, factors that fall beyond NDPHC’s control.
”As you know, in accordance with the grid code, we are placed on restrictions for a number of reasons, from inadequate transmission grid availability.
“Although this is being seriously addressed by the Minister of Power, Mr Adebayo Adelabu, due to low demand from the downstream electricity market.
“It is important to note that power generation is driven by demand, and therefore, if the demand isn’t met, the plants will not generate.
”In certain cases when the demand arises, there is inadequate dispatch corridor or wheeling capacity through the grid network,” she said.
Adighije said that in spite of these limitations, NDPHC continued to spearhead the transmission grid expansion plan and distribution network interventions to enable power generation to be delivered to the underserved communities.
Despite these constraints, Adighije noted that NDPHC continues to lead in transmission grid expansion and distribution network interventions to deliver power to underserved communities.
According to her, the company has invested over N500 billion in transmission infrastructure since the inception of the NIPP, including transformers, substations, switch gears, transmission lines, and other assets now operated by the Transmission Company of Nigeria (TCN).
She also revealed that a metering dispute with a gas supplier led to the shutdown of the Alaoji Power Plant, but efforts are underway to restore the plant before year-end. The company, she said, is working to reactivate the Gas Metering Station to resolve issues related to gas losses.
She said NDPHC had made several unsuccessful attempts to secure a Power Purchase Agreement (PPA) with NBET.
“This has impacted the company negatively, financially and further exacerbates the stranded capacity of the company. Currently, NDPHC is placed in the least priority bucket for dispatch in spite of its available daily dispatch capacity of about 2,000MW. By no small measure, NDPHC remains the largest fleet of generating turbine units in the sector, conversely, much of that capacity remains stranded due to these impediments that constrain the company from generating optimally.”
The NDPHC helmsman said the GenCo is holding the largest fleet of generating turbine units in Nigeria’s power sector, but noted that much of this capacity remains stranded.
Adighije said the company is leveraging a Nigerian Electricity Regulatory Commission (NERC) order allowing power generation companies to enter into bilateral agreements.
She disclosed that NDPHC is concluding several deals to sell its stranded capacity directly to eligible customers.
She added that “this move aligns with the NERC July 25 order, which permits generation companies to trade directly with eligible customers, a step aimed at addressing the issue of stranded capacity.”
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