BY CHIKA OKEKE, Abuja
The Niger Delta Power Holding Company, NDPHC, has mapped out plans to increase investment in the North, focusing on renewable energy during the second phase of the National Integrated Power Project ,NIPP.
Managing Director of NDPHC, Ms Jennifer Adighije disclosed this when the House of Representatives Committee on Power visited the company’s headquarters in Abuja.
The Phase 2 of NIPP is expected to diversify Nigeria's generation mix by harnessing the renewable energy potential in the North, particularly solar and other renewable resources.
Adighije stated that the company is considering off-grid solutions, mini-hydropower projects and other solar interventions as part of its strategy to address power supply gaps across the country.
She said: "We are currently in NIPP Phase 1, which is power generation from fossil fuels and gas. NIPP Phase 2, in line with the Energy Transition Plan, is where we are diversifying our generation mix and preparing to transition to renewable energy."
The MD hinted that NDPHC currently contributed about 4,000 megawatts to Nigeria’s installed generation capacity of approximately 12,000 megawatts, representing about 30 per cent.
She noted that NDPHC had built 10 power plants under NIPP Phase 1, seven of which were commercially operational, while two were under construction and one is undergoing upgrades.
Adighije stated that the company is also intervening in transmission and distribution, saying that it had completed 120 transmission projects, comprising 60 330-kilovolt ,kV, substations, 31 132-kV substations and 37 expansion projects.
She informed that the projects had a combined installed transformer capacity of more than 10,000 Megavolt-amperes ,MVA, noting that NDPHC had also undertaken hundreds of distribution projects, including the installation of distribution transformers and 33-kV and 11-kV lines across the country.
On her achievements, she informed that NDPHC recovered 110 abandoned containers and 216 packages within its first 100 days, saving the company more than N30 billion.
She highlighted debt recovery, digitalisation, improved procurement practices, asset restoration, completion of distribution projects and recovery of several generation units among the administration’s key achievements.
Adighije maintained that NDPHC recovered about $12 million from cross-border bilateral customers in Togo and other debtors, from an outstanding debt of more than $50 million.
She stated that the company also recovered several turbines across its power plants, contributing about 470 MW to the national grid.
Adighije identified transmission constraints, low tariffs, inadequate market settlements, gas supply challenges, unpaid debts and vandalism as major challenges affecting the company’s operations.
She noted that NDPHC had more than 1,500 MW of mechanically available generation capacity but was allocated an hourly dispatch of about 500 MW, resulting in significant suppressed and stranded capacity.
This, she said cost the company more than N300 billion, seeking regulatory intervention to review the dispatch merit order.
Adighije appealed to the committee to intervene in outstanding debts owed NDPHC by electricity market participants, including the Nigerian Bulk Electricity Trading Plc ,NBET, which she said had accumulated liabilities of more than N400 billion.
She informed that the company is also seeking the settlement of obligations arising from its assets recognised in the regulated asset base of the Transmission Company of Nigeria ,TCN.
Chairman, House of Representatives Committee on Power, Victor Nwokolo praised the NDPHC management for its efforts to improve electricity generation, describing the company’s work as critical to the entire power value chain.
“We have also been to their power stations. And honestly, they are taking reasonable actions towards making Nigerians access electricity,” he said.
Nwokolo disclosed that the success of the power sector depended on effective performance of generation, transmission and distribution, adding that a failure in one segment would affect the entire value chain.
He added: “If they don’t generate, there’s nothing to transmit. If they don’t transmit, there’s nothing to distribute. So, I must commend them."
The lawmaker lauded Adighije for her proactive approach to managing the company and addressing challenges confronting its power plants.
He cited the Alaoji Power Plant as an example, adding that the facility could have faced a worse fate without proactive intervention by the NDPHC management.
Nwokolo promised that the legislative arm of the government would provide the necessary support, saying that NDPHC cannot resolve all the challenges confronting the power sector on its own.
He noted that the committee would examine the concerns raised by the company and work with relevant stakeholders to address them.
The committee chairman stated that the oversight visit was intended to understand the challenges confronting NDPHC and support the company in finding solutions, rather than create an adversarial relationship between lawmakers and the agency.
Nwokolo praised NDPHC for accepting the legislative oversight, saying that such visits provided an opportunity for public agencies to demonstrate their achievements, explain their challenges and receive necessary support from the legislature.
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