Output from Nigeria’s installed capacity has plunged to zero six times in May, leading to a complete collapse of the grid for a short period, industry data shows. The latest complete grid collapse was recorded on June 1 when eleven power plants were offline due to a lack of fuel supply and load rejections by power distribution companies due to ageing infrastructure.
Mounting gas supply shortages and recurring attacks on pipelines, particularly in the Niger Delta, is leaving most of the installed gas power generation capacity lying idle.
Peak power output of over 5,070 MW was achieved on February 2, the Ministry of Power was happy to announce at the time – even though this is just over two thirds of Nigeria’s overall installed capacity of of 8,457.6 MW.
As of early April, however, over 3,000 MW of capacity that had been operational at start of the year was unutilised due to gas constraints, another 245 MW could not be dispatched due to grid constraints or rejections by electricity distribution companies (discos) and a further 280 MW was kept offline over issue with cooling water or due to maintenance.
Egbin Power turns to LNG to expand gas-fired plant
Disgruntled with the lack of government support to avert gas shortages, the operator of Nigeria’s largest power plant – the Egbin Power Station near Lagos – now seeks to build an LNG import terminal. Securing stable fuel supply would underpin plans to expand the plant’s capacity from currently 1,320 MW to up to 1,900 MW. Once upgraded and expanded, the Egbin plant is meant to achieve 85% power availability and 34% efficiency. The gas-fired plant consists of 6 units with currently 220 MW each.
In theory, more than a quarter of Nigeria’s total electricity generation comes from Egbin plant. In actual fact, severe shortage of gas supply often reduce its operational capacity to under 100 MW, said Kole Adisina, chairman of the Ebin power plant.
“Gas supply problems happen pretty much every day, which can lead to the temporary shut-down of a generating unit,” he said, admitting that these gas shortages currently leave over three quarters of Egbin’s electricity customers out of power.
Privatisation of the Egbin Power Station kick-started its transformation: Sahara Groupacquired majority shareholding stakes in two former PHCN assets, namely Egbin Power station and Ikeja Electricity Distribution Company. Kepco holds a 10% share in the Egbin plant. The new private owners are now trying to fast-track the technical and regulatory process as they seek to raise financing to double the plant’s capacity over the next five years.