Tag: electricity supply

  • Gas, line, frequency reduce electricity supply by 3,844MW

    The Nigerian Electricity Supply Industry (NESI) yesterday announced that following gas, line and frequency constraints, the power sector reduced power supply by 3,844 Mega Watts (MW) on Tuesday.

    On the day under review, according to its website report, the Nigerian Electricity System Operator (SO) of the Transmission Company of Nigeria (TCN) sent out 3,169MW to the 11 distribution companies in the sector.

    Following the constraints encountered in the generation, distribution and transmission chains, the  sector recorded an estimated loss of N1,845, 000, 000 on the day under review.

    NESI said : “On September 06 2016, average power sent out was 3169MWh/hour (down by 115MWh/h). The reported gas constraint was 3004MW. The reported line constraint was 415MW according to TCN. The reported high frequency constraint is 425 MW. The water management constraint was 0MW. The power sector lost the estimated equivalent of N1,845, 000, 000 on September 06 2016 due to constraints.”

    It had on Monday recorded loss of 3,610MW as gas constraint was 2,932MW, line constraint was 388.4MW, while frequency constrain was 290MW.

    Following the challenges in the sector production chains, the Nigerian Electricity System Operator (SO) of the Transmission Company of Nigeria (TCN) could only evacuate 3284MW to the 11 distribution companies (DisCos).

    On the day under review, said NESI, there was no record of water management constraint.

    It however noted that the various losses or constraints culminated in an estimated loss N1,733, 000, 000.

    The NESI said: “On September 5, average power sent out was 3284MWh/hour (down by 34MWh/h).  The reported gas constraint was 2932MW.

    “The reported line constraint was 388.4MW, according to TCN. The reported high frequency constraint is 290 MW. The water management constraint was 0MW.

    “The power sector lost the estimated equivalent of N1,733, 000, 000 on September 5 due to constraints.”

    In its September 6 report, the SO said that at 6.00hour of September 7, the NESI generated 3,215.70MW. It added that the total energy sent out on the previous day was 3,169MW, hit a peak generation of 3,710.4MW and 2,834.40MW lowest generation.

    According to the report, the sector recorded 51.55Hz highest frequency and 48.78Hz lowest frequency.

    From the reports, power generation that was 3,521.90 Mega Watts (MW) on Sunday, Tuesday dipped to 3,228MW, and on Wednesday further dipped to 3,215.70MW.

    This resulted in 293MW drop in power on Tuesday and a further dip by 13MW on Wednesday.

    resulting in 293MW drop in power produced by the generation companies( GENCO.)

  • Residents demand improved electricity supply

    Residents demand improved electricity supply

    Some residents of the suburbs of Abuja have appealed to the Federal Government to improve electricity supply to their areas.

    They told the News Agency of Nigeria (NAN) in separate interviews in Abuja on Tuesday, that they had yet to benefit from the relatively stable electricity supply being experienced in Abuja.

    Mr. Murtala Mustapha, a resident of Zuba in the Gwagwalada Area Council of the FCT, said that the cost of diesel and maintenance of generating sets was overwhelming.

    “Poor Nigerians are not happy in their homes because they don’t have electricity,’’ Mustapha said.

    Chief Johnson Okechukwu, a businessman at Deidei Building Material Market, urged the President Muhammadu Buhari-led administration to implement projects for which it would be remembered.

    “I have a 150 KVA generator which is supposed to serve as standby to cater for short periods; but now that it is being used as the only source of electricity, it will spoil quickly.’’

    Alhaji Mufutaudeen Balogun, an Islamic scholar and resident of Zauda Village in the Abuja Municipal Area Council (AMAC), said that the community had not seen light for the past two months.

    Balogun attributed the blackout in his area to the deplorable condition of the transformer serving the community.

    He appealed to the relevant authorities to assist the community by replacing the old transformer with a new one.

    “This community has not seen electricity in the past two months, in spite of Federal Government’s efforts at ensuring stable power supply in the country.’’

    Another resident, Mr. Sikiru Muhammed, said the blackout in his area, had paralysed business activities.

    He said the situation imposed additional hardship on owners of generators, making them to spend more money on the fuel.

    “We call on the FCT Administration, particularly the Abuja Municipal Area Council to come to our aid and find a lasting solution to this situation.’’

    Similarly, Mrs Comfort George, who runs a saloon, said that the inadequacy of power supply in the community was threatening her business.

    “I spend over N12, 000 to fuel my generator every week just to render service and satisfy my customers but at the end of the day, I hardly make profit,’’ George said.

    She appealed to the relevant authorities to provide the community with a new transformer as the residents could not afford to buy one.

  • Electricity supply in Ideato-North, Imo

    SIR: Ideato-North Local Government Area of Imo State completely lost her ever failing sight some five years ago when cables that supplied her electricity from far away Orlu Local Government Area were destroyed in the bid to dualize the Orlu-Akokwa interstate highway. Ever since, she has been left to find her way in the dark with those dangerously fashioned, risk-laden sticks of generators.

    For years, even before its power cables were completely disconnected, Ideato-North has been in total blackout. Little wonder an average resident of the area does not know, neither does s/he care, about the changes that has occurred in the ownership and management of the nation’s electricity supply –right from the days of the National Electric Power Authority (NEPA) to the era of the Power Holding Company of Nigeria (PHCN) and presently the privatized Generating and Distribution Companies (GENCOs and DISCOs). Even those who are aware of these developments would rather still refer to the nation’s power providers as NEPA obviously because no improvement is evident to justify the change of name and or ownership.

    Needless lamenting the pain and setback this terrible situation has wrought on the sleepy local council area but I can only say that I have had to wear my clothes rumpled all these years. Despite the economic setback, developmental stiffness and social decay, this anomaly has not for once received the deserved attention let alone any committed effort of the Imo State government; the same government that caused the demolition. Neither the bulldozed roads nor the dismantled cables have had any notable improvement, inspiring speculations that the whole exercise was a calculated effort to throw the area into perpetual blackout and terrible environmental hazards (especially erosion) for political reasons. This is even as Ideato-south Local Government Area whose power supply also flows from Orlu and also suffered the same devastation have since had theirs – power and roads alike, fixed.

    Governor Rochas Okorocha had during the last campaigns that reinstated him to a second term, promised massive siting of factories of relative and comparative advantages in each of the communities of the state. This is commendable but not without one wondering how the scores of communities in Ideato-north would benefit from this venture without electricity.

    I urge the Imo State government to, as a matter of urgency, restore electricity supply to Ideato North. The Enugu Electricity Distribution Company (EEDC) also, should not just feign helplessness but bring enough pressure to bear on the government and its erring contractor to immediately restore the demolished cables. It won’t also be out of place if the Imo State government and the EEDC reach an agreement that could see EEDC take over the electricity part of the project as it in the best position as the sole electricity distributor in the zone.

    Power supply should be restored in Ideato-North L.G.A. of Imo State. That which is good for Owerri as the capital city of the state and Ideato-south L.G.A. as the home of the governor is also good for Ideato-North, if for nothing, for equity’s sake. As my people will say, let a mother treat her children equally because none of them was gotten by performing a C-section on wood.

     

    • Uzoaganobi Ebuka

    Ideato-North, Imo State.

  • Towards improving electricity supply

    Towards improving electricity supply

    The dismal state of power supply in the country was at the centre of a book launch in Lagos. Titled: The Developments in the Nigerian Electric Power System (1973-1998), it will serve as reference material to present and future adminstrations in the country, reports AKINOLA AJIBADE 

    When Chief Philip Asiodu mounted the podium to deliver his speech, the audience who converged on the Institute of International Affairs(NIIA), Lagos for a book launch, listened with rapt attention.

    As a retired ‘super’Permanent Secretary and former Economic Adviser to ex-President Olusegun Obasanjo, there was perhaps no one among the guests more qualified to speak on the happenings in the nation’s power sector in the last 26 years.

    The elder statesman cleared his throat and began his speech but midway into his presentation, power went off, causing embarrassment to all the guests.

    Two other speakers on the occasion suffered similar fate as their speeches were punctuated by intermittent power failures.

    Given the importance of the event- the launching of a book titled:  The Developments in the Nigerian Electric Power System(1973-1998), co-authored by Lawrence Amu and Foluseke Somolu , the power outages was seen as a big disappointment by guests that graced the occasion.

    This is because successive governments have spent huge sums of money to fix the sector, but to no avail. Instead of having stable electricity, the country has been witnessing erratic power supply.

    Little wonder that speakers, at the event, took their turns to x-ray the problems in the sector as contained in the book, while at the same time, proffer solutions to them.

    Asiodu, who was the Chairman of the occasion, said the problems in the electricity sector are both individual and institutional.

    He said while some of the problems are committed by individuals, others come from institutions of government such as the ministries and offices in charge of procurement and contracts.

    He said selfishness, on the part of some government officials  contributed greatly to the problems in the sector.

    He said turbines are not working optimally, coupled with the fact that the  government was unable to wheel gas to them for electricity generation.

    He said the questionable status of the turbines brought into the country during the era of the National Electric Power Authority (NEPA) and the Power Holding Company of Nigeria(PHCN) and  poor gas supply was responsible for their low output.

    Asiodu said a concept called ‘’ Emergency Power Turbines’ was developed during Obasanjo’s regime to misappropriate funds.

    He said: ’’By this, people collected money, travelled abroad to buy second-hand turbines and come back to say that they have paid for new turbines. When this happens, the issue of collecting, for instance, 15 per cent or more as bribe is certain.”

    According to him, the government approached notable institutions abroad to carry out a study on where thermal and hydro plants would be cited in the country to ensure optimal generation of electricity.

    The report, he said, was yet to be found years after it was conducted, adding the country must free itself of corruption before the power sector can improve.

    Asiodu, a former permanent secretary under the regime of former Head of State, Gen Yakubu Gowon (rtd), said faulty privatisation programme embarked upon by President Goofluck  Jonathan, was part of the problems bedevilling the sector.

    He said the hopes of many Nigerians were dashed, following the inability of the power generation companies (GENCOs) and distribution companies (DISCOs) to improve power supply two years after the Federal Government sold the assets of the defunct PHCN to them.

    He said: “The government chose a wrong model when it sold the assets of PHCN to private investors in 2011. The issue of what we can do and capable of doing as regard the sector was not taken into consideration by the outgoing government. Instead of the government to look for people who can do the job and further deploy them into areas where they are needed to achieve productivity, it did not.’’

    He said politics took over the management of the power sector after President Obasanjo left office in 2007, stressing that the development had resulted in  poor electricity generation in the country.

    Asiodu said the country generates less than 6, 000 megawatts (Mw) of electricity for its over 170 million population.

    ‘’The electricity megawatts is not enough to meet the needs of the 170 million population. Many that are out of jobs today would have been employed if there is reasonable power supply. The industries would operate well, expand their capacities and employ more people. But this could not happen because the country does not produce enough electricity to drove the economy,”he said.

    Also, Amu, one of the authors of the book, said there was the need to revisit systems and practices of truth, honesty, and competence that existed in the country before in order to move the electricity sector forward.

    He said planning was at the heart of the sector, urging the in-coming government to plan and implement policies to avoid mistakes made by the previous governments in the power sector.

    He said the book chronicled developments in the sector vis-a-vis the policies formulated by the government to facilitate its growth, adding that it would help present and future governments to address the problems besetting the industry.

    Professor Frank Okafor of the University of Lagos (UNILAG) said poor infrastructure was inhibiting the process of the power sector, arguing that failure of the government to address the problems means the country would continue to experience irregular power supply.

    Okafor, a lecturer in Electrical and Electronics, said the sector is battling with obsolete equipment, such as transformers, transmission substations and others, advising the government to replace them with new ones.

    He lamented that the country has not been able to provide  laboratories that can be used to test electrical equipment since 80s, adding that the development is affecting the sector.

    He said: “ There is no brand of 30KVA transformer that can be tested in Nigeria. There was a facility for testing the equipment in the 80s and 90s, but today, there is nothing like that. This, among other problems hinder the progress of the sector. How can a company  distribute electricity effectively when the equipment used in providing such services are either not working or obsolete?”

    The Chief Executive Officer, Sahara Power Company, Kola Adesina, urged power firms to put in place measures to improve power generation.

    Adesina, whose firm bought Egbin Power Plant, in addition to owning Ikeja Electric (IE), a power distribution company, appealed to the government to give attention to gas production.

    He urged the in-coming government of General Muhammadu Buhari (rtd) to prioritise to gas production/ distribution to enable turbines generate to improve electricity supply. Another problem, Adesina said  the new government must tackle is high tarrifs, noting that there has been no correlation between power supply and tarrifs given consumers.

     

  • Electricity supply to hit 5,500 megawatts

    Electricity supply to hit 5,500 megawatts

    President Goodluck Jonathan  will soon begin commissioning of four power projects across the country.

    This was disclosed by the Minister of Power, Chinedu Nebo, and Benue State Governor, Gabriel Suswam at the end of the last meeting of  the Board of Niger Delta Power Holding Company (NDPHC) Ltd.

    The meeting was chaired by Vice-President Namadi Sambo at the Presidential Villa, Abuja.

    Nebo also disclosed that the administration has achieved installed minimum electricity generation capacity of 5,500 megawatts despite unrelenting sabotage of oil and gas pipelines by vandals.

    According to him, government was losing N120 million monthly and N1.5 billion yearly to repairs of vandalised pipelines.

    The Minister said that a pattern of deliberate vandalism of the pipelines, which occurs every two weeks, had made the nation to lose about 1,600 megawatts of electricity at a particular time.

    He therefore advised  the incoming government of Gen. Muhammadu Buhari to intensify security surveillance of the petroleum pipelines in the country and consider digitalising the surveillance system.

    On the commissioning, he said: “Four power plants have been completed and will be commissioned in the next couple of weeks. Sapele is one of them, Ihobor is another one. And hopefully, by the grace of God, we intend to do the commissioning very soon so that Nigerians will enjoy even more of what the current administration has done in the power sector.

    “There are literally hundreds of other projects that need to be commissioned. So, very soon, we are going into the commissioning exercise.”

    On his part, Suswam, who is also a member of the Board, said: “The board resolved to commission some of the numerous projects under the NIPP programme. Those projects are to be commissioned in the subsequent weeks.”

    Apart from the new power plants, he explained that the government has completed more transmission lines but would not be able to complete some sales transactions because of some complications in the bid process and inadequate gas supply.

    The inability to seal the sale transaction deals, he said, was not due to fear of the unknown when a new government comes on board next month.

  • CBN disburses N213b to boost electricity supply

    • Govt begins settlement of N36.9b gas debts

    The Central Bank of Nigeria (CBN) yesterday began the disbursement of the N213 billion Nigerian Electricity Market Stabilisation Facility (NEMSF) to electricity generation and distribution companies.

    A  Memorandum of Understanding (MoU) with firms in the power sector for the provision of the fund under the NEMSF and government agencies such as the CBN, the ministries of Power and Petroleum Resources was signed to begin the disbursement of the facility to resolve the liquidity challenges facing the power firms.

    Speaking at the event, the CBN Governor, Mr Godwin Emefiele, lamented the inability of electricity firms to achieve appreciable increase in electricity supply but said the N213 billion facility would kick start the electricity market in a way to ensure improvement in the power supply.

    He said: “The CBN will provide this facility to address shortfall in power supply. In exchange for this intervention, we expect parties that are signing this agreement today to ensure that the funds are repaid as and when due; ensure that gas increases into the generation of power and invest the fund in necessary improvements in generation.”

    He said the CBN has indicated its willingness to provide the NEMSF to settle certain outstanding debts in the Nigerian Electricity Supply Industry (NESI) and guarantee the take-off of the Transitional Electricity Market (TEM).

    In specific terms, the facility will cover legacy gas debts and the shortfall in revenue during the Interim Rule Period (IRP).

    According to him, the CBN has engaged the services ofTransaction Advisor – FBN Capital; Fund Manager  – Meristem Securities;  and Legal Team – Detail Solicitors and Stream Sowers & Kohn (SSK).  The facility will be administered through deposit money banks; the Facility will be disbursed at the rate of 10 per cent per annum;  the tenor shall not be more than 10 years;  a Special Purpose Vehicle (SPV) that complies with section 31 of CBN Act 2007 will serve as an intermediary between the banks and the electricity market players;  Nigeria Electricity Regulatory Commission (NERC) shall reset the Multi Year Tariff Order (MYTO) to ensure that it provides for the loan repayment including the costs of setting up and operating the NEMSF.

    He said other power sector value chain players must also agree to specific service related commitments which include gas suppliers to commit to assured gas supply at higher volumes; generating companies (GENCOs) and Distribution Companies (DISCOs) to commit to utilising the funds for equipment/infrastructure acquisition, refurbishment and/or upgrade.

    He added that all parties that are licensed by the NERC to operate in the electricity market to accept to be immediately bound by performance agreements signed with the relevant authorities including the Bureau of Public Enterprise (BPE); all parties will also be subject to additional oversight mechanism to be developed by NERC and CBN to ensure business continuity; and that all power sector players must meet obligations that are critical for continued electricity supply.

    Minister for Petroleum Resources Mrs. Alison-Madueke said with the signing of the MoU, the N36.9 billion legacy debts that has inhibited investment in gas supply and infrastructure has been fully addressed.

    She said unattractive pricing of domestic gas, anomalies in the tariff regime, difficulties across the value chain in addressing capacity issues primarily due to shortfall in revenues were some of the reasons for the initiation of the financial intervention.

    She said: “This gas intervention and the legacy debt of N36.9 billion owed to gas suppliers by the power sector-(PHCN) over the last few years is now being settled through the CBN-led intervention scheme, and with this intervention, all undisputed claims are hereby settled.”