Power generation down by 1,400MW as Discos reject allocations

Efforts by the Federal Government to ramp up power generation seem to be suffering a setback following the refusal of the electricity distribution companies to off-take the power allocated to them.

The Minister of Power, Adebayo Adelabu, decried the rejection of power by electricity distribution companies, describing it as regrettable. He disclosed this in a statement on Sunday.

According to the minister, generation peaked at 5,170 megawatts on Friday, ”unfortunately, it had to be ramped down by 1,400MW due to the inability of the Discos to pick the supply.”

Adelabu lamented the development, saying “This is really regrettable considering that the government is on course to increase generation to 6,000MW by the end of the year.”

The minister disclosed this during a facility tour of TBEA Southern Power Transmission and Distribution Industry in Beijing, China.

Adelabu, who was in China to attend the China-Africa Cooperation Summit, also disclosed that the Federal Government had concluded plans to release $800m for the construction of substations and distribution lines under the Presidential Power Initiative.

The money, he said, will ensure the construction of substations for Lot 2, and substations and distribution lines for Lot 3 at a cost of $400m each.

Lot 2 covers Benin, Port Harcourt, and Enugu distribution companies’ franchise areas while Lot 3 covers Abuja, Kaduna, Jos, and Kano DisCos’ franchise areas.

During an interactive session with TBEA management, Adelabu assured them of the Federal Government’s commitment to working with world-class organisations like TBEA to achieve the Renewed Hope vision of President Bola Tinubu for the power sector, especially in the areas of transmission and distribution, as well as renewable energy.

Speaking on the problems in the power sector which had hindered industrial growth, the minister noted that this was due partly to the fragility of the transmission and distribution infrastructure which he said had become old and dilapidated, leading to the historical epileptic supply of power to households, industries and businesses.

According to him, more than 59 per cent of industries in Nigeria are off the grid.

“They do not see the national grid as reliable and dependable. So a lot of them now operate their own captive, self-generated power,” he said.

The power minister said the government is determined to transform the power sector, adding that a lot of activities have started and are gradually bringing back confidence in the industry.

The minister stated that about 40 years ago, Nigeria was able to generate 2,000MW, saying it took us over 35 years to add another 2,000MW.

“When this administration came in last year, we met around 4,000MW of power but within a year, we were able to generate a milestone of 5,170MW, adding about 1,000MW of power within the first year. It may look small, but compared to the history of the country, this is commendable.

“Our plan is that by the end of the year, we aim to achieve 6,000MW of power through a combination of hydroelectric power plants and our gas-fired power plants. We are also targeting 30,000MW of power to be generated, transmitted, and distributed by the year 2030 out of which 30 per cent would be renewable energy,” he stated.

The minister stressed that the renewable energy segment would come from a combination of hydroelectric power from small dams, solar energy sources, and wind farms from onshore and offshore winds.

Earlier, the President of TBEA, Huang Hanjie, assured of the organisation’s continued support for the Nigerian government’s vision for the power sector.

He said TBEA operates across 100 countries in the world and would be willing to share its experience in the provision of energy.

He said TBEA is not new in Nigeria, adding that the company is presently working with the Omotosho power plant in Ondo State.

Hanjie said TBEA would be willing to work with the Nigerian government to achieve the vision and contribute to the ongoing power sector revolution in the country.

In July, the Nigerian Electricity Regulatory Commission rolled out tough sanctions against Discos that commit infractions capable of inflicting pain on consumers.

Among other things, NERC said it would reduce five per cent of the administrative, and operational expenditure of any electricity distribution company that failed to off-take at least, 95 per cent of the total energy allocated to it for distribution.

The commission’s Order on Performance Monitoring Framework for all the Discos,  stipulated that failure to off-take up to 95 per cent of available nominations in any month will attract issuance of a rectification directive..