Power Sector And Other Related News Stories For Wednesday July 26th 2023

Posted by News Room July 26, 2023

Grid Power Drops 20% as Debts Hamper Gas Supply

Electricity generating companies (GenCos) are not turning on their full thermal plant capacity due to a drop in gas supply, and this is showing up in the decline in power generated for the grid.

For over a week, power supplied to the national grid has fallen below 4,000 megawatts (MW) with an average of 3500MW supplied across Nigeria on Monday, a development that is hampering economic activity, and national productivity, especially as subsidy removal means more homes and small businesses rely more on the grid supply.



NDPHC: $1.2bn Spent on Power Distribution Assets, 374 Projects Executed to Boost Supply

The Niger Delta Power Holding Company Limited (NDPHC) has said about $1.2 billion has been spent so far to boost its distribution network in the power sector.

Speaking at the 8th Nigeria Energy Forum in Lagos, NDPHC Executive Director, Networks, Ifeoluwa Oyedele, noted that over 374 projects in the power distribution space of the Nigerian Electricity Supply Industry (NESI) had been executed.

Ifeoluwa, who spoke on the theme: ‘Maximising National Integrated Power Projects’, noted that the benefiting electricity Distribution Companies (Discos) were expected to refund the NDPHC, stressing that the projects had been handed over to the utilities.



A Review Of The Electricity Act, 2023

The Nigerian government embarked on a transformative journey by conducting an extensive review of the Electricity Power Sector Reform Act (EPSRA) 2005. This comprehensive evaluation was aimed at addressing the persistent challenges in the power sector, harnessing new opportunities, as well as propel Nigeria toward a future of reliable, affordable, and sustainable electricity supply.

The Electricity Bill was enacted into law as the Electricity Act, 2023 (“the Act”) on the 8th of June 2023. The Act establishes a thorough legal and administrative framework for the operation of Nigeria’s fully privatized electricity market. The Act prioritizes the implementation of tariffs that accurately reflect the cost and service provided, as well as promotes competition in the electricity sector through the use of contracts and rules. The main objective of this law is to enhance the efficiency and effectiveness of Nigeria’s electricity industry.



Capacity Utilization Stagnates at 53% Despite Shortages

Latest report by the Nigerian Electricity Regulatory Commission, NERC, covering a period of seven years revealed that in 2015 capacity utilization was 51 percent while it dropped to 46 percent in 2016. The figures for 2017 was 50 percent, 2018 was 52 percent, 2019 was 47 percent, 2020 was 53 percent, while capacity utilization for 2021 and 2022 were 56 percent and 61 percent respectively. Capacity utilization so far this year was put at 61 percent.

NERC estimated that grid energy demand in 2020 was 17,556 Megawatts while actual supply was 4,009MW, a mere 22.8 percent of energy demanded. It projected that demand would grow to 45,662MW by 2030.



Reps Want Oil Companies Compelled to Generate Electricity From Gas

The House of Representatives has urged the Federal Ministries of Power and Petroleum Resources to compel oil and gas producing companies engaged in flaring of gas to convert flared gas to electricity for the benefit of the host communities.

The call was sequel to a unanimous adoption of a motion by Jonathan Ukodhiko (PDP-Delta), at plenary on Tuesday.

Moving the motion earlier, Mr Ukodhko said that Nigeria is a major gas producer with a large chunk being flared as waste.

He said that the flared gas is a major and cheap source of electricity, capable of taking care of the power needs of the host communities.



Abia to Have Independent Power Supply in Weeks – Gov Otti

Alex Otti, the Governor of Abia State has said Aba will be independently powered through the Geometric Power Limited’s power plant in one or two months.

Otti disclosed this on Tuesday in a statement through his official Twitter handle when the Chairman of Geometric Power Limited, Prof Bartholomew Nnaji, a former Minister of Power and his team paid him a courtesy visit.

Gov Otti expressed delight that Aba will soon have a reliable power supply.

He stated that the State and GPL were in talks with the Nigerian National Petroleum Corporation Limited to resolve the gas supply issue.



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