By SUNDAY ABBA, Abuja
Electricity generating companies (GenCos) in Nigeria have expressed grave concern over the incessant collapse of the national grid as being experienced in recent times, and underutilised capacity, saying they causes them huge, multi-dimensional loss capable of crippling business.
Managing Director/Chief Executive Officer (MD/CEO) of the Association of Power Generation Companies (APGC) Dr. Joy Ogaji, made this known on Thursday in Abuja, while speaking at a one-day workshop organised by the association to update journalists covering the power sector to enable them report, especially as it concerns the GenCos, from an informed point of view.
According to her, GenCos bear the burnt of grid collapse or instability, or whatever nomenclature is used to describe it as it has a very devastating effect on the hydro and thermal machinery, leading to technical and commercial losses.
Dr Ogaji noted the forced shutdown and disruptions that usually come with grid collapse, resulting in equipment damage and substantial revenue losses for GenCos in addition to the lingering issue of capacity underutilisation pose a significant threat to Nigeria’s power sector.
“Technically, grid collapse can cause catastrophic damage to generators, transformers, and other critical infrastructure, leading to prolonged downtime and costly repairs.submitted that addressing these challenges requires coordinated efforts from government, regulatory bodies, and the power sector to improve infrastructure, enforce maintenance protocols, and ensure financial viability for GenCos,” she said.
Putting into consideration that the weakness of any segment of the industry value chain could trigger grid collapse, as agreed by stakeholders at the workshop, Ogaji said, “Given the frequency of grid collapses in the country and the impact of it on our business we have thought it wise to provide clarification on how it affects our businesses.
“We therefore need to make every effort to efficiently manage all stages of value chain with intentional focus on maximizing efficiency in the entire electricity chain.”
Collaborating the APGA’s position, an expert, an industry expert, Prof. Stephen Ogaji, said the frequent shutdown and startup instructions from the National Control Centre (NCC) and grid collapse (Turbine Trip) had resulted in huge damage to equipment that requires millions of dollars to fix, energy and revenue losses to the sector, especially the generation companies.
He therefore, recommended that the Nigerian Electricity Regulatory Commission (NERC) approves the procurement of ancillary services that provide secondary controls, spinning reserve, while the system operator should strive to complete and commission the Supervisory Control and Data Acquisition (SCADA) system project to enable them to oversee all the power systems properly.
He also urged the system operator to put in effect the earlier proposed Generation Dispatch Tool (GDT) and implement and enforce all the provisions of the Grid Code.
The Grid Collapse has become a recurring decimal in the country in recent times. This year alone, the grid has collapsed about 12 times, according to a record.
The World Bank data on countries with the most electricity outages in Africa showed that in 2019, Nigeria suffered outages for 191 days out of 365.
The economic cost of power shortages in Nigeria is estimated at around $28 billion annually—equivalent to two percent (2%) of the country’s Gross Domestic Product (GDP).
Record from Kainji and Jebba HydroPower Plants showed that the two GenCos lost over N30.55 billion to grid failure from 2022 through 2024.