Frequent Grid Collapses Endanger Nigeria’s Power Industry, GenCos Sound Alarm
Nigeria’s power generation companies (GenCos) have raised concerns over the recurring collapses of the national grid, warning of severe consequences for the stability and growth of the nation’s electricity sector.
The national grid, operated by the Transmission Company of Nigeria (TCN), has experienced 12 collapses so far in 2024, causing widespread power outages and significant economic losses for businesses and energy providers.
Speaking at a workshop organized by the Association of Power Generation Companies (APGC), its Chief Executive, Dr. Joy Ogaji, detailed the profound mechanical and financial damages inflicted on GenCos due to the grid’s instability.
Dr. Ogaji revealed that Kainji and Jebba hydro plants alone have suffered losses totaling N21.87 billion this year as a direct result of system failures. “Grid collapse poses a significant threat to Nigeria’s power sector, resulting in frequent disruptions, equipment damage, and substantial revenue losses for GenCos,” she stated.
Impacts on Infrastructure and Operations
The technical effects of grid collapses are far-reaching. Generators, transformers, and other critical infrastructure have sustained severe damage, leading to extended downtimes and costly repairs. On the financial side, GenCos are grappling with reduced power sales, penalties for non-delivery, and soaring operational expenses, all of which compound their challenges.
“These recurring incidents deplete already dwindling resources, leaving GenCos struggling to maintain, repair, and replace damaged equipment. This ultimately compromises the reliability and efficiency of the power supply,” Dr. Ogaji explained.
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Operational Setbacks
Echoing these concerns, Engr. Jacob Barasuno, Operations Supervisor at Mainstream Energy, highlighted the operational disruptions at the Kainji and Jebba power plants. He noted that the instability of the grid has hindered GenCos from meeting their monthly and annual power generation targets, affecting their ability to honor bilateral and contractual obligations.
With the power sector already under strain, stakeholders are calling for urgent reforms and investments to address grid instability and safeguard Nigeria’s energy future.
