Victor EzejaAvailable power generation capacity dropped by 4.02 percent (76.47 megawatts from 4,387.91MW recorded in Q2 2023 to 4,211.44MW in the third quarter (Q3) 2023, according to Nigerian Electricity Regulatory Commission (NERC).
According to NERC Q3 2023 report, there were twenty-seven (27) grid-connected power plants in Q3 2023 consisting of 19 gas, four hydro, two steam, and two gas/steam-powered plants.
Join our WhatsApp ChannelIt said the decline was due to reduced available generation capacity of some power plants connected to the national grid which developed mechanical faults at some point within the period under review.
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It said: “Six out of the seven plants with the highest available capacity in 2023/Q2 (Egbin ST, Delta GS, Kainji, Odukpani, Okpai, and Afam VI) recorded decreases in their available generation capacities in 2023/Q3.
“The highest decreases in available capacity relative to 2023/Q2 were recorded by Odukpani and Okpai plants with -53% and -20% respectively.
“Shiroro, Azura IPP and Jebba power plants recorded increases of +51.71%, +22.07% and +17.54% respectively in average available capacity in 2023/Q3 compared to 2023/Q2.
“Conversely, Egbin ST and Delta GS both recorded significant decreases of -19.10% and -18.85% respectively in 2023/Q3 compared to 2023/Q2.”
The Commission added that the remaining 19 power plants, categorised as “others”, cumulatively recorded a 8.66 percent decrease in available capacity, in Q3 2023, compared to Q2 2023.
Looking at the chart of the available generation capacity data, it dropped to the lowest in July which the Commission said was “because Ihovbor, Geregu NIPP, Afam IV&V and Sapele plants were shut down for most of the month due to mechanical faults.
“Afam IV &V (-60MW) was out due to defective blades from the 2nd to 31st of July, Sapele had one unit (ST3) out on maintenance after a fire outbreak and Geregu NIPP (-135MW) was out due to mechanical faults and gas constraints throughout July.
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“The decline in energy generation was primarily due to the reduction in the available generation capacity of the grid-connected power plants. Gas supply constraints and mechanical faults remain the major factors affecting the amount of energy generated by gas-fired thermal plants.
“The decline in energy generation was primarily due to the reduction in the available generation capacity of the grid-connected power plants. Gas supply constraints and mechanical faults remain the major factors affecting the amount of energy generated by gas-fired thermal plants,” it added.
Nigeria has recorded national grid collapse not less than three times this year and about seven times in 2022 with each throwing a substantial part of the country into darkness as the Transmission Company of Nigeria (TCN) kept promising to resolve the situation. Two of the grid collapse incidences were recorded in the Q3.
“In line with the Grid Code, the Commission has directed the SO to submit a detailed report containing the root causes of the incidents leading to the system collapse as well as mitigation plans, to avoid a recurrence of similar incidents in the future,” the reported stated.
The country’s total generation capacity has continued to hover between 4,000MW to 5,000MW as the Federal Government keeps pledging to take urgent necessary steps to improve the power sector to boost industrial growth.
Electricity Subsidy
The NERC report further indicated that the Federal Government incurred a subsidy obligation of N204.59 billion in the (Q3) of 2023.
The report explained that the subsidy expenses were incurred due to the lack of cost-reflective tariffs across all electricity distribution companies (DisCos).
“It is important to note that due to the absence of cost-reflective tariffs across all DisCos, the Government incurred a subsidy obligation of N204.59 billion in 2023/Q3 (average of N68.20 billion per month), which is an increase of N69.37 billion (+51.30%) compared to the 135.23 billion (average of ₦45.08 billion per month) incurred in 2023/Q2; this increase is largely attributable to the government’s policy to harmonise change rates.”
76.56% Revenue Collection By DisCos Recorded
The report further revealed that the total revenue collected by all DisCos in Q3 this year was N267.61 billion out of N349.55 billion billed to customers.
This represents 76.56 percent collection marking an increased efficiency , which it attributed to the implementation of various collection campaigns for improved remittance by post-paid customers.
Metering
The NERC report also indicated that a total of 148,389 meters were installed in Q3 2023 representing a decrease of 32,670 installations (-18.04 percent) compared to the 181,059 meters installed in Q2 2023.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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