The Nigerian Electricity Regulatory Commission (NERC) has approved a deal to procure 450 megawatts of electricity from the Zungeru Hydro Electricity Generation Company Limited, aiming to prevent the newly completed plant’s shutdown.
This directive, part of the Commission’s Order No. NERC/2024/044, is intended to ensure grid stability and continuous improvement in electricity supply across Nigeria.
The directive was issued in response to sub-optimal grid dispatch caused by low generation, which has affected the ability of electricity distribution companies to maintain consistent service levels due to frequent interruptions.
The Zungeru Hydro Electricity Generation Company, having successfully completed its initial capacity testing on May 15 with an average generation capacity of 600MW, faced the prospect of shutting down pending finalisation of contractual arrangements with off-takers.
To prevent this, NERC granted a special dispensation allowing the Independent System Operator of the Transmission Company of Nigeria (TCN) to manage the settlement for power wheeled from Zungeru for 105 days, starting from May 16.
This temporary measure aims to ensure the plant remains operational, thereby improving service delivery to Nigerian electricity consumers.
Furthermore, NERC directed the TCN-ISO to enter into an interim energy sales agreement with Zungeru Hydro Electricity Generation Company for up to 450MW to address imbalances between generation and offtake.
This agreement, effective from May 16 to August 31, 2024, will be on a best-effort basis.
The Zungeru plant, with a capacity of 700MW, is the second-largest hydroelectric plant in Nigeria and is expected to significantly contribute to the national grid, generating 2.64 billion kilowatt-hours of electricity annually and meeting nearly 10 percent of Nigeria’s domestic energy needs.
The recent completion of the Zungeru power plant has already led to an increase in Nigeria’s power generation capacity.
According to the Minister of Power, Adebayo Adelabu, the plant’s operation has boosted national power generation from 4,200MW to 4,800MW.
Adelabu highlighted the positive impact of Zungeru’s addition of 625MW to the grid, marking a significant improvement from the low generation levels experienced earlier in the year.
