The management of the Niger Delta Power Holding Company (NDPHC) Limited has raised concerns over a N600 billion debt owed by the Nigerian Bulk Electricity Trading (NBET) Plc, saying it is severely hindering the company’s operations.
NDPHC’s Managing Director, Jennifer Adighije, disclosed this in a statement issued on Sunday in Abuja through her Technical Adviser (Media), Mr. Adesanya Adejokun, News Agency of Nigeria (NAN) reports.
Adighije highlighted several other operational challenges, including gas supply issues, transmission constraints, and difficulties with bilateral entities.
Despite these hurdles, she noted that the new management had successfully revived five previously idle turbine units across the Calabar, Omotosho, Sapele, and Ihovbor power plants, adding 625 megawatts (MW) to the national grid.
“NDPHC currently has mechanically available generation capacity of about 2,000MW that is significantly stranded due to transmission constraints, gas supply and gas transportation limitations.
“In addition to the dwindling offtake by the Electricity Distribution Companies (DisCos),” she said.
She explained that over the years, the National Integrated Power Projects (NIPP) plants under NDPHC had been used by the System Operator to provide primary frequency response, thereby supporting grid stability. However, these ancillary services, she said, are yet to be monetised in line with the Grid Code and industry regulations.
She added that the company faces dispatch restrictions due to both limited grid availability and low market demand, factors that fall beyond NDPHC’s control.
”As you know, in accordance with the grid code, we are placed on restrictions for a number of reasons, from inadequate transmission grid availability.
“Although this is being seriously addressed by the Minister of Power, Mr Adebayo Adelabu, due to low demand from the downstream electricity market.
“It is important to note that power generation is driven by demand, and therefore, if the demand isn’t met, the plants will not generate.
”In certain cases when the demand arises, there is inadequate dispatch corridor or wheeling capacity through the grid network,” she said.
Adighije said that in spite of these limitations, NDPHC continued to spearhead the transmission grid expansion plan and distribution network interventions to enable power generation to be delivered to the underserved communities.
Despite these constraints, Adighije noted that NDPHC continues to lead in transmission grid expansion and distribution network interventions to deliver power to underserved communities.
According to her, the company has invested over N500 billion in transmission infrastructure since the inception of the NIPP, including transformers, substations, switch gears, transmission lines, and other assets now operated by the Transmission Company of Nigeria (TCN).
She also revealed that a metering dispute with a gas supplier led to the shutdown of the Alaoji Power Plant, but efforts are underway to restore the plant before year-end. The company, she said, is working to reactivate the Gas Metering Station to resolve issues related to gas losses.
2,000MW capacity is stranded due to infrastructure bottlenecks
Adighije further stated that NDPHC had made several unsuccessful attempts to secure a Power Purchase Agreement (PPA) with NBET.
”This has impacted the company negatively, financially and further exacerbates the stranded capacity of the company.
“Currently, NDPHC is placed in the least priority bucket for dispatch in spite of its available daily dispatch capacity of about 2,000MW.
“By no small measure, NDPHC remains the largest fleet of generating turbine units in the sector, conversely, much of that capacity remains stranded due to these impediments that constrain the company from generating optimally,” she noted.
She described NDPHC as holding the largest fleet of generating turbine units in Nigeria’s power sector, but noted that much of this capacity remains stranded.
To address this, Adighije said the company is leveraging a Nigerian Electricity Regulatory Commission (NERC) order allowing power generation companies to enter into bilateral agreements.
She disclosed that NDPHC is concluding several deals to sell its stranded capacity directly to eligible customers.
She added that “this move aligns with the NERC July 25 order, which permits generation companies to trade directly with eligible customers, a step aimed at addressing the issue of stranded capacity.”
What you should know
- In March, the Niger Delta Power Holding Company (NDPHC) called for presidential intervention to secure funding for ongoing power projects and to settle outstanding debts owed to Generation Companies (GenCos), as part of broader efforts to enhance electricity supply across Nigeria.
- The Federal Government is currently indebted to GenCos to the tune of over N4 trillion.
- In April, the government announced plans to begin settling this debt, which stems from electricity already generated and supplied to the national grid.
