RAINY SEASON: REPORT SEES IMPROVED POWER SUPPLY
A report by the Financial Derivatives Company (FDC), has predicted improved power supply in the coming weeks owing to the return of the rainy season and the resultant decline in water constraints suffered by hydro power plants.
In its economic bi-monthly update, the FDC warned that gas shortages would remain the principal challenge to power producers as gas fired thermal power plants account for approximately 70 percent of total power generation.
The rainy season has commenced and we expect water constraints to decline significantly and a gradual pickup in hydro power.
This is expected to boost power output in the coming weeks. However, gas shortages will remain the principal challenge as gas-fired thermal power plants account for approximately 70 percent of total power generation,” the research and financial advisory firm stated.
It noted that with water constraints falling, an increase in hydropower generation would increase available power supply and reduce the demand for alternative energy like diesel or fuel-powered generators.
It said that in February 2021, the average on-grid power output was 4,559MWh/h, 1.40 percent higher than the average of 4,496MWh/h recorded in the corresponding period in January.
It attributed major constraints to the power sector to gas and water distribution challenges, which have restrained the ability of the Distribution Companies (Discos) from generating power optimally.
It added: “Total constraints for the review period averaged 1,881MWH/H. So, far in March, power output averaged 4,693MWh/h with a total constraint of 1,902MWH/H. During this period, Geregu, Omotosho, and Afam VI NIPP plants were the most affected by the gas constraints while Shiroro Plant had the highest high level of water constraints’’