The leadership of the Niger Delta Power Holding Company (NDPHC) Limited has voiced concerns regarding a debt of N600 billion owed by the Nigerian Bulk Electricity Trading (NBET) Plc, emphasizing that this situation is significantly impacting the company’s operations.

NDPHC’s Managing Director, Jennifer Adighije, shared this information in a statement released on Sunday in Abuja through her Technical Adviser (Media), Mr. Adesanya Adejokun, according to reports from the News Agency of Nigeria (NAN).

Adighije pointed out various other operational issues, such as problems with gas supply, transmission limitations, and challenges with bilateral entities. Despite these obstacles, she mentioned that the new management has successfully brought five previously inactive turbine units back to life at the Calabar, Omotosho, Sapele, and Ihovbor power plants, contributing an additional 625 megawatts (MW) to the national grid.

“NDPHC currently has a mechanically available generation capacity of around 2,000MW that is largely stranded due to transmission issues, gas supply, and gas transportation challenges.

“Moreover, there has been a decrease in offtake by the Electricity Distribution Companies (DisCos),” she stated.

She explained that throughout the years, the National Integrated Power Projects (NIPP) facilities managed by NDPHC have been used by the System Operator to provide primary frequency response, which helps in supporting grid stability. Nevertheless, she pointed out that these ancillary services have not been monetized under the Grid Code and industry regulations.

She indicated that the company is facing dispatch challenges due to limited grid availability and reduced market demand, factors that are beyond NDPHC’s control.

“As you know, according to the grid code, we face restrictions for various reasons, primarily due to inadequate transmission grid availability.

“Although this matter is being diligently addressed by the Minister of Power, Mr. Adebayo Adelabu, it is further complicated by the low demand from the downstream electricity market.

“It is essential to recognize that power generation depends on demand; therefore, if demand is not met, the plants will remain idle.

“In some cases, when demand does occur, there is an insufficient dispatch corridor or wheeling capacity within the grid network,” she remarked.
Adighije stated that despite these obstacles, NDPHC is leading the charge in expanding the transmission grid and enhancing distribution networks to ensure that power generation reaches underserved areas.

Despite these constraints, Adighije pointed out that NDPHC continues to thrive in the expansion of the transmission grid and the enhancement of distribution networks to deliver electricity to communities in need.

She mentioned that the company has invested over N500 billion in transmission infrastructure since the inception of the NIPP, which includes transformers, substations, switch gears, transmission lines, and other assets currently overseen by the Transmission Company of Nigeria (TCN).
Furthermore, she revealed that a metering dispute with a gas supplier led to the temporary shutdown of the Alaoji Power Plant, but efforts are underway to restore the plant before the year’s end. The company, she noted, is actively working to reactivate the Gas Metering Station to resolve issues related to gas losses.

The 2,000MW capacity remains unused due to infrastructure limitations.

Adighije further stated that NDPHC has made several unsuccessful efforts to obtain a Power Purchase Agreement (PPA) with NBET.

This situation has negatively impacted the company, both in terms of money and by making the stranded capacity problem worse.

“Right now, NDPHC is seen as the least important for dispatch, even though it can dispatch about 2,000MW every day.

“Importantly, NDPHC remains the largest in generating turbine units in the industry; however, a lot of that capacity is stuck because of different issues that stop the company from working at its best,” she said.

She described NDPHC as having the largest collection of generating turbine units in Nigeria’s power sector, but pointed out that a lot of this capacity is still stranded.

To tackle this issue, Adighije indicated that the company is utilizing a Nigerian Electricity Regulatory Commission (NERC) order that allows power generation companies to engage in bilateral agreements.

She revealed that NDPHC is finalizing multiple agreements to sell its stranded capacity directly to eligible customers.

She further stated that “this initiative is in line with the NERC order from July 25, which allows generation companies to trade directly with eligible customers, a measure intended to resolve the stranded capacity problem.”