The Association of Power Generation Companies (APGC), an umbrella body of the Gencos, has confirmed the collapse of the anticipated minimum 5000 megawatts (mw) Power Purchase Agreement (PPA) activated by market participants in the second quarter of 2022.
The PPA was packaged under the coordination of the Nigerian Electricity Regulatory Commission (NERC) and the Nigerian Bulk Electricity Trading Company (NBET).
Market participants, including Gencos, distribution companies (Discos), Transmission Company of Nigeria (TCN), gas suppliers and NBET had signed a contract that would ensure that at least 5000mw of power was generated, paid for 100% and successfully delivered to consumers on a daily basis with effect from July 1, 2022.
The executive secretary, Association of Power Generation Companies (APGC), an umbrella body of the Gencos, Dr. Joy Ogaji described current power industry solutions as knee jerked, shortsighted and not sustainable.
She attributed the collapse of the PPA activation to the imposition of the contract and its terms on them, as well as the lack of key contractual details in the agreement document handed to them by the regulator.
Also Read: N1trn Debt Payment Top Gencos’ Demand From Nigeria’s Incoming Govt
Nigeria’s power sector has continued to underperform and has defied a lot of policy measures aimed to move the needle in power supply to homes and businesses through the national grid, despite the privatization of the generation and distribution chains of the power industry in 2013.
With approximately 13,000mw installed generation capacity, actual power supply to Nigerians continue to hobble below 5000mw post-privatization.
The nation’s power sector has been enmeshed with horrible stories of endless crashing of the national grid, otherwise known as system collapse, perennial stranded power, load rejection by Discos and their rascality in the issuance of outrageous bills that are not commensurate with energy consumed.
With the collapse of the PPA activation, which NERC had assured Nigerians would lead to a marked improvement in power supply starting from July 1, 2022, by consolidating a minimum 5000mw daily supply with potential to ramp up to 7000mw, it does appear that Nigerians will have to wait longer before experiencing a leap in power supply.
Also Read: Why Damaged Batteries May Result In The Total Write-Off Of Electric Cars By Insurers
“The Gencos have been inundated with negative comments on the subject matter and it is imperative that we put the records straight. Contrary to malicious gossips making the round that the Gencos’ inability to make available their inflated capacity is the reason why the subject matter failed, the following are some of the reasons why the PPA activation plan failed.”
She explained that Nigeria being Africa’s largest economy and most populous country, with a population estimated at over 216 million people and the world’s 27th largest economy by Gross Domestic Product (GDP) was endowed with both natural and human resources, and has continued to attract strategic Foreign Direct Investment (FDI).
By Bosco Agba
Be the first to know when we publish an update
