Nigeria Boosts Electricity Supply with 450MW Deal from Zungeru Hydro Plant

Acknowledging challenges in grid dispatch due to insufficient generation, NERC highlighted the adverse impact on electricity distribution companies (DisCos), affecting service reliability and leading to frequent interruptions

In a move set to enhance Nigeria’s electricity supply and bolster grid stability, the Nigerian Electricity Regulatory Commission (NERC) has approved a landmark agreement for the procurement of 450 megawatts (MW) of electricity from the Zungeru Hydro Electricity Generation Company Limited.

This decision comes as part of NERC’s efforts outlined in Order No. NERC/2024/044 to optimize transmission system dispatch operations and ensure uninterrupted power supply across the nation.

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The directive, signed by NERC’s Vice Chairman, Musiliu Oseni, emphasizes the critical need to prevent disruptions at the recently completed Zungeru hydropower plant.

Following successful capacity testing, which demonstrated an average generation capability of 600MW, the plant faced the prospect of shutdown due to pending contractual agreements with off-takers.

This situation prompted NERC to intervene, aiming to maintain the plant’s operational status to benefit Nigerian consumers reliant on stable electricity provision.

Acknowledging challenges in grid dispatch due to insufficient generation, NERC highlighted the adverse impact on electricity distribution companies (DisCos), affecting service reliability and leading to frequent interruptions.

By securing this interim agreement, NERC aims to bridge the gap between generation and consumption, thereby bolstering grid management capabilities.

Under the special dispensation granted by NERC, the Independent System Operator (ISO) of the Transmission Company of Nigeria (TCN) will oversee the administration of power settlements from Zungeru for an initial period of 105 days, effective from May 16th.

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This arrangement underscores NERC’s commitment to leveraging Zungeru’s generating capacity to optimize energy distribution across the country.

“The commission directs the TCN-ISO to enter into an interim energy sales agreement with ZHEGC for up to 450MW of energy and capacity to address the imbalances currently experienced between generation and offtake, thereby further strengthening grid management,” the directive stated.

This initiative not only aims to stabilize the national grid but also supports efforts to enhance service delivery by mitigating load shedding practices often employed by DisCos to manage grid imbalances.

By ensuring Zungeru’s continued contribution to the grid, NERC seeks to alleviate the burden on electricity consumers who have long faced irregular supply patterns.

The agreement between TCN-ISO and Zungeru Hydro Electricity Generation Company Limited is designed to be on a best-effort basis, reflecting a mutual commitment to operational efficiency and sustainable electricity provision.

This development marks a significant step forward in Nigeria’s quest for energy security and underscores the pivotal role of hydroelectric power in the nation’s energy mix.

As Nigeria continues to pursue ambitious goals for economic growth and development, a reliable electricity supply remains indispensable.

The NERC’s decision to facilitate this agreement signifies a proactive approach to addressing the challenges within the power sector, promising tangible benefits for businesses and households reliant on consistent power supply.

With the 450MW injection from Zungeru, stakeholders anticipate improvements in electricity distribution, paving the way for enhanced productivity and economic resilience across various sectors.

As the agreement unfolds, all eyes will be on the impact it will have on Nigeria’s energy landscape, with hopes high for sustained progress in meeting the nation’s growing energy demands.

 

This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members

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