The federal government, through the National Orientation Agency (NOA), has attributed the frequent collapse of the national grid which results in nationwide blackouts to the inability of electricity distribution companies (DisCos) to take power generated.
In a circular released on Wednesday titled “Why National Grid Collapses”, NOA explained that the country can generate about 13,000 MW of electricity as well as transmit about 8,000 but given DisCos’ limited infrastructure, this will also result in system failure.
The agency said that last month the DisCos rejected about 1,400 MW of electricity of the 5,313MW that was generated by the generation companies.
“As of today, the TCN has an installed wheeling capacity of over 8,100MW and can comfortably wheel out 6,000MW of generated power, thanks to these facility upgrades courtesy of the Siemens project as well as TCN’s internal projects.
“On the generation side, with the addition of the 700MW Zungeru hydroelectric plant which came on stream in the second quarter of the year, Nigeria’s national grid now has an installed power generation capacity of about 13,610MW.
“Despite the 13,610MW generation capacity and the over 8,000MW transmission capacity, the total active distribution capacity of the 11 Discos in Nigeria is still hovering around 4,000MW.
“Just last month, on September 2nd, a peak generation in three years was achieved but out of the 5,313MW generated and wheeled out that day, the Discos rejected almost 1,400MW due to their systems’ fragility. These load rejections by Discos contribute to the collapse of the national grid,” the statement read in part.
Cost-recovery is a Major Challenge for DisCos
The agency highlighted that cost recovery remains a significant challenge for distribution companies, limiting their ability to invest in critical infrastructure.
- According to NOA, this financial constraint has created an environment that discourages necessary investments by the DisCos, hindering their capacity to maintain a stable and efficient system.
- However, the agency emphasized that the government is actively working to create an attractive business climate for the DisCos. This includes several initiatives, such as the recent increase in electricity tariffs for Band A customers, aimed at enhancing the financial viability of the sector.
“Cost recovery is the major challenge of Discos, which has hampered them from upgrading their distribution substations and facilities to accept more power for distribution to their consumers.
“This environment discourages investment in the sector. However, the Tinubu administration is tackling this age-long challenge headlong…,” the statement added.
Backstory
Nairametrics earlier reported that the national grid collapsed on Tuesday, resulting in a nationwide blackout.
- This marks the eighth grid failure in 2024, with an unprecedented three collapses occurring in October alone.
- In response to the grid failure, the Transmission Company of Nigeria (TCN) stated that the disturbance was temporary and that restoration efforts are ongoing.
- “TCN engineers are already working to quickly restore bulk power supply to the states affected by the partial disturbance. Presently, bulk power supply has been restored to Abuja, at 2:49 pm, and we are gradually restoring power to other parts of the country. We sincerely apologize for every inconvenience this may cause our electricity customers,” Ndidi Mbah, TCN spokesperson, said on Tuesday.
- However, the company has yet to issue any further statements on the full restoration of the grid, leaving many parts of the country still experiencing power outages.
