Nigeria Loses N2bn Daily To Power Inefficiencies
……UNAVAILABILITY OF GAS TOPS THE LIST OF SECTOR’S PROBLEM
By Tayo Elegbede
Power inefficiencies, particularly unavailability of gas among other factors, accounted for Nigeria’s daily loss of N2 billion.
Analysis from the Advisory Power Team (APT) of the Office of the Vice President has shown that as a result of this daily loses, Nigerian economy will be deprived of about N720 billion in 2020.
Information obtained from the APT indicated that the losses were induced by problems associated with gas supply and grid infrastructure challenges in the Nigerian Electricity Supply Industry (NESI).
This has happened even after the Nigerian National Petroleum Corporation (NNPC) had earlier this month announced an increase of 19.14 per cent in the average daily natural gas supply to power plants.
The national oil company said the increase translates to 788 million standard cubic feet of gas per day (mmscfd), equivalent to power generation of 2,873MW, although there has been no marked improvement in the power supply.
While Nigeria sources most of its electricity from thermal, gas-fired power plants, accounting for 70 per cent, generation from hydropower plants makes up about 30 per cent of the total.
Some of the country’s power plants have not also been producing at all, including AES, ASCO, Egbin Station 6, Dadin Kowa and Sapele NIPP, according to the information supplied by the office.
While the stations with the highest output during the year are Egbin 2-5, Delta, Azura, Odukpani, Kainji, Jebba, Afam VI, Geregu, Shiroro and Okpai while the lowest were Afam VI and V, Sapele and Ihovbor NIPP.
The lack of gas has, in turn, caused a loss of over N2 billion per day in July on the average for the entire month.
“On July 13 2020, average energy sent out was 3,981 MWH/Hour (up by 260.06 from the previous day).
“The power sector lost an estimated N2,101,000,000 on July 13, 2020, due to constraints from the insufficient gas supply, distribution infrastructure and transmission infrastructure.
“Peak generation attained on July 13, 2020, was 4,987.8mw, peak average energy sent out ever is 4,685 MWH/H on 17 April 2020”, the vice president’s office said.
The APT further stated that on July 14, 2020, average energy sent out was 3,919 MWh/hour (down by 61.26 from the previous day).
“The power sector lost an estimated N2,013,000,000 on July 14, 2020, due to constraints from the insufficient gas supply, distribution infrastructure and transmission infrastructure,” the analysis added.
It, however, put the peak generation attained on July 14, 2020, at 4,662 MW, while peak average energy sent out ever still remained 4,685 MWH/H and peak generation attained ever stayed at 5,375 MW.
Similarly in the month of May, the power sector lost an estimated N1.92 billion daily due to constraints from insufficient gas supply, weak distribution and transmission infrastructure.
The APT revealed that about 3,958mwh/h was lost to gas shortage problems, the average energy supply stood at 4,179mwh while peak power was 5,316mwh, which was achieved in February.
Also, on May 7, 2020, for instance, the average energy sent out was 4,441 MWh/h (up by 11 MW from the previous day) while 2,993 MW was not generated due to the unavailability of gas.
In the same month, 1,021.10MW was not generated due to high frequency resulting from the unavailability of distribution infrastructure, while 4.0 MW was recorded as losses due to water management.
While the former managing director of the Transmission Company of Nigeria (TCN), Mohammed Gur before his exit from the company has recently blamed Distribution Companies (Discos) for lacking the requisite infrastructure to improve the country’s power supply.
Generation Companies (GenCos) recently said although they had increased their generation capacity to 8,145 MW, they were only able to produce 3,987mw, with 4,159mw left stranded as a result of the constraints in the national grid capacity.
Meanwhile, the beneficiaries of the over N200 billion approved recently by NNPC, which was supposed to be used for the sector’s problems have said it was rather used for the payments of debts owed in 2019.