Generating companies have disclosed that the Federal Government didn’t consult them over the new Siemens Electrification roadmap project adopted by the government some weeks ago.
According to the operators, distribution companies (DisCos) and the Transmission Company of Nigeria (TCN) were consulted, but they were left out, and yet the roadmap explains how they are to build on installed capacity.
The Executive Secretary of the Association of Power Generation Companies, Joy Ogaji, who made this revelation recently in Lagos, at the NAEC conference, noted that the policy document of the ministry of power is not explicit on the roles of the operators.
She advanced that there is a lot of isolation in the power sector value chain and until it is addressed, progress can’t be made easily.
Ogaji maintained the need for proper information circulation in the system, adding that information was being managed and everybody in the sector is working in silos and isolation.
The Ministry of power, she noted, is projecting 10,000 megawatt by December and yet the policy document is not clear on how.
She further noted that the installed capacity of all the 28 GenCos put together is around 13,427 megawatts, and yet what is made available for usage is an average of 7500MW , while about 3500MW have been the average utilised since privatisation.
This, she continued, indicates that the remaining is stranded, hence, depriving investors of incentives to invest.
Ogaji also regretted that, DisCos pay only 25 per cent of the 3,500MW, adding that, “about 6,625MW is not fetching us money. DisCos are able to remit 25 per cent of the payment of 3500MW to the market, so 6,625MW is not being paid for and no one is bothered, rather, they say GenCos should continue to increase capacity.”
She was however optimistic about the commercial viability of gas in the country explaining that sustainability of power in Nigeria comes from gas, and data from TCN shows a demand gap of about 56,000 megawatt which signifies viability.
The Gencos have capacity to increase production, citing that Egbin plans to increase from 1,320 megawatts to 5,000 megawatts, but there are no incentives, as currently about 500MW is been taken from their production.
In his opinion, the General Manager, Communication and public Relations of Niger Delta Power Holdings Company (NDPHC),Yakubu Lawal attributed the challenges of the gas to power sector to finance, adding the reason it appears so is because the power market is still young.
He however remarked that until there is synergy, advancement can’t be made and one sector can’t be equally left behind.
Ogaji also reiterated the need for a strong leadership in the sector saying that, government and operators need to work together, saying: “we can’t continue to read on paper what government has decided about our business, and until we work together with a strong political will and decision makers, available power can’t get to Nigerians.”