• Sun. May 12th, 2024

Citizen NewsNG

....news at your finger tip

NIGERIA GENERATES 2,943MW

ByCitizen NewsNG

Jun 15, 2020


The Nigerian electricity market generated 2,943.44mw at 6:00hours of 14th June, 2020, The Nation learnt on Monday.
The System Operator (SO) of the Transmission Company of Nigeria (TCN) disclosed this on its website.
According to the operational report of the day under review, “the lowest energy generation on 13/06/2020” was 3,381mw while the peak energy generated the same day was 4,416mw.
The energy sent out on 13/06/2020 was 93,293.44 mwh, which is equivalent to 3,887.26mw.
Recalled that the electricity Generation Companies (GenCos) last week said that they have in this year doubled their available capacities.
The companies that were reacting to the call of the Senate a reversal of the power sector privatisation, said out of their 8,145mw available capcities, they only generate 3,987mw for Nigerians.
Owing to national grid capacity constraints, the balance of 4,159mw has been stranded, the said.
The GenCos said: “It is very important to stress that The GenCos have doubled their available capacities from 4,214MW at takeover in 2013 to 8,145MW in 2020. Out of the 8,145MW available capacity, only 3,987MW is generated for Nigerians. The balance 4,159MW is stranded as a result of constraints in the national grid capacity.”
Their press release also said the power sector has been in limbo because of its failure to heed the privatization contract guidelines.
The GenCos said there has been the money non-payment for power generated and supplied to the national grid, as there was no effective Power Purchase Agreement (PPA).
This, according to them, “has led to a huge outstanding debt of approximately One Trillion Naira (N1TRN) owed to GenCos from the inception of privatization till date.
“All contracts remained inactivated, notwithstanding the declaration of the Transitional Electricity Market (TEM) which heralds contract effectiveness. The TEM promise provoked some additional investments by GenCos with its attendant high cost of capital, increased regulatory risk, increased debt profile thereby placing a huge financial burden on the GenCos.
“The GenCos were made to bear the brunt of this lack-luster performance on the part of NBET as the off-taker of the GenCos power.
“The non-provision of the securitization for payment (the Guarantee) has encouraged multiple defaults on invoices for power supplied to the national grid and with zero consequences for such defaults.
“GENCOS received a payment of between 11-30% of their invoiced amount on a monthly basis. However, some of these shortfalls have been paid with the PAG 701 Billion Naira (@ 80% energy invoice) leaving out still huge outstanding receivables and arrears in excess of 1000 days after invoicing without taking cogniscance of the interest on delayed payments and foreign exchange volatility.
“Worthy of note is that the weak transmission (Grid) and distribution network inherited from the PHCN days are still very much in existence and are not complementing our efforts in maximizing our respective available capacities to the benefit of the Nigerian populace.
“The maximum capacity attained by the national grid ever is 5,375 MW as opposed to the current overall average available capacity 8,589 MW and installed capacity of 13,427 MW with an expansion capacity of 20,000MW in an enabling environment. Average stranded capacity that could have been made available to Nigerians in the light of maximum attained grid capacity is an average of 3,214MW.
“This implies that if we had a grid capacity that matches our average available capacity, 3,214 MW can be immediately made available to Nigerians with the current state of operations of the GENCOS and at no additional cost.”

SHARE ON

Leave a Reply

Your email address will not be published. Required fields are marked *

Solverwp- WordPress Theme and Plugin