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IWIN Editorials

The Nigerian power sector at a glance #lessTalkMorePower (Part 2)

Monday, 06 August 2018

1) The gap between installed available generation capacity and delivered generation capacity is ever widening (currently an average of 2,600MW).

2) The gap between transmission capability and available generation capacity has remained unassailable.

3) The emphasis now should shift from the media razzmatazz of new project commissioning to utilizing available capacities:

  1.  Close the gap between available generation capacity and delivered capacity.
  2.  Close the gap between transmission wheeling capability and available generation capacity.

4) The Nigerian economy is powered by around 10,000MW of power generation; the grid is responsible for about 3,500MW while the rest 6,500MW is through self-generation and this is on a base load level. When T&D technical losses are factored in, the ratio will be worse: 2,500MW Vs 7,500M

5) Self-generation powers the Nigerian economy yet the government has spent by far higher in providing the 3,500MW than what individuals and private businesses have spent in providing the balance 6,500MW.

6) Self-generation is a huge industry that is yet to be tapped. 

7) Any industry with access to natural gas will generate power at costs lower than that offered/charged by the DisCos.

8) There is a need to take a closer look at the data on self-generation to identify what potentials lie therein:

  1.  Reticulate natural gas supply within high commercial and industrial areas.
  2.  Reticulate natural gas supply within high net worth residential areas.
  3.  Encourage clustered generation and reticulate gas supply to designated clustered generation sites: mostly residential locations/housing estates.
9) The difference between success and failure is the reason(s) offered for failure:
  1.  The DisCos have presented a litany of reasons why they have failed to perform chief among which is the low threshold levels of generation.
  2.  TCN has blamed the DisCos for their cash trapped situation.
  3.  The GenCos have blamed the DisCos for not paying for power generated.
  4.  Who will bell the cat?

i. The Naira is devalued thus making the tariff inefficient.

ii. Inflation rate is beyond what was envisaged in the current tariff model.

iii. Gas for generation is domiciled in dollars, and the devaluation has dislocated the tariff.

iv. Etc.

About IWIN

The Independent Energy Watch Initiative (I-WIN), an enterprise of Energy ConServ and the Roundtable for the Growth and Development of Power (RODEP), is an online/web based power sector portal that strives to engage stakeholders and the Nigerian public on topical issues in the power sector.

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