NERC endorses 450MW procurement deal from Zungeru power plant
The Nigerian Electricity Regulatory Commission (NERC) has given its nod to a deal for the procurement of 450 megawatts (MW) of electricity from Zungeru Hydro Electricity Generation Company (ZHEGC) Limited
The Zungeru power plant, which is located in the Kaduna River, near the town of Zungeru in Niger State, is a major infrastructure project with the capacity to generate 700MW, making it the second-largest hydroelectric plant in Nigeria, behind the Kainji Dam.
The NERC, in a directive to that effect signed by its Vice Chairman, Musiliu Oseni, acknowledged that the sub-optimal grid dispatch experienced on the national grid is partly occasioned by low generation thereby affecting the electricity distribution companies’ ability to deliver on the committed service levels to end-use customers due to frequent interruptions to manage transient and recurring grid imbalances.
The directive is said to have been issued further to the commission’s Order No. NERC/2024/044 on the “Transmission System Dispatch Operation, Cross-Border Supply and Related Matters” and in the overriding public interest of ensuring continuous improvement in the supply of electricity to Nigerians, was aimed to ensure grid stability and to prevent the shutdown of the newly completed Zungeru hydropower plant pending when it gets off-takers.
The commission disclosed that the Zungeru Hydro Electricity Generation Company had successfully concluded its initial capacity testing on May 15, with a demonstrated average generation capacity of 600MW.
According to NERC, the Zungeru power company, which currently has no contract with off-takers, had indicated its decision to shut down the plant after the capacity test pending the finalisation of contractual arrangements with its prospective off-takers.
To avoid this, the regulator said it decided to ensure the power plant remains on the grid and continues to inject power to improve service delivery to electricity consumers in Nigeria.
To this end, the commission granted a special dispensation that permits the Independent System Operator of the Transmission Company of Nigeria to assume responsibility for the administration of settlement for power wheeled from Zungeru for an initial period of 105 days commencing from 0.00Hrs of May 16.
“Given the overriding public interest, the commission has granted a special dispensation that permits the Independent System Operator of the Transmission Company of Nigeria (TCN-ISO) to assume responsibility for the administration of settlement for power wheeled from ZHEGC for an initial period of 105 days commencing from 0.00Hrs of the 16th May 2024,” the NERC directive read partly.
To avoid the perpetual practice of limiting DisCos load off-take as a corrective mechanism for system imbalances, the commission directed the TCN-ISO to enter into an interim energy sales agreement on a best-effort basis with ZHEGC for up to 450MW of energy and capacity to address the imbalances currently experienced between generation and offtake and further strengthen grid management.
