GenCos: Available power generation capacity drops to 6,000MW — from 9,000MW in 2020

Power generation companies (GenCos) say available power generation capacity dropped to 6,000 megawatts (MW) from 9,000MW.

Joy Ogaji, executive secretary, Association of Power Generation Companies, (APGC), made this known on Wednesday during a panel session at the Nigeria Oil and Gas (NOG) Conference and Exhibition in Abuja.

She said not all of the current capacity is being utilised by GenCos due to various challenges.

Ogaji also said that only 25 out of 160 GenCos licenced by the Nigerian Electricity Regulatory Commission ( NERC) are currently operating in Nigeria.

“NERC has issued 160 licences to power generation companies. Only 25 are operational currently. The other thermal stations are waiting on the sidelines and if they are actively involved, we can generate an additional 30,000MW,” she said.

“The 25 plants that are currently operating have a combined installed capacity of over 13,000MW and they have an available capacity, which has dropped.

“As at last year we were almost hitting an available capacity of 9,000MW but a lot of challenges have now dropped it to, as of this morning, above 6,000MW.

“At privatisation on November 1, 2013, power was slightly above 3,400MW but as at last year, the available capacity had been ramped up to nearly 9,000MW.

“So we had an available capacity of 9,000MW last year, but this year it is now 6,000MW and even the 6,000MW we are not utilising all of it.”

Ogaji noted that the three hydropower plants — Kainji, Jebba and Shiroro — with an installed capacity of 1,500MW were also not being optimally utilised.

She said the take-off of the African Continental Free Trade Agreement (AfCFTA) had made it imperative for Nigeria to fix its power sector to make its companies able to compete with their counterparts across the continent.

Ogaji mentioned gas supply constraints as one of the major challenges facing GenCos and responsible for the drop in power generation.

She said that this could be solved if the Nigerian National Petroleum Corporation (NNPC) agrees to supply 60 percent of the gas needed by the GenCos.

Ogaji said the move would enable the sector to achieve its vision of generating 30,000MW by 2030, with 3,000MW coming from renewables and 27,000MW from the power plants.