POWER
GENERATION IN NIGERIA
Nigeria has an installed generation capacity of 8,644MW of which
6,905MW is government owned. Over the past two decades, population has
increased to 150 million, with an average GDP growth rate of 6.66%, over the
last 5years. Within this period, power generation capacity has stagnated. These
factors, combined with inadequate maintenance of existing power generation
stations, have given rise to severe generation shortages. It is estimated that
26,561MW will be required in the next 9 years to meet demand as envisioned
in the Vision 20: 2020 target.
CURRENT STATUS OF POWER GENERATION
Overview of Power Generation
The Nigerian Power Generation sector can be detailed into the
following sub-sectors:
(a) Existing Federal Government of Nigeria (FGN) Power Generation
facilities.
(b) Independent Power Projects.
(c) National Integrated Power Projects.
W)
Existing Govt. Owned
Power Stations – Hydro:
Existing
FGN Power Stations – Thermal:
Independent
Power Projects:
The IPP’s are the non-FGN funded investment
in the Nigerian power generation industry
National
Integrated Power Projects (NIPP):
The NIPP is
funded and owned by the three tiers of government (federal, states and LGAs.) These
facilities are currently being constructed and will be operated via Operations
and Maintenance contracts, when commissioned, prior to the privatization of
these stations.
INSTALLED VS. AVAILABLE CAPACITY
Current Average power generation
is 3,200MW
POWER
GENERATION CAPACITY TREND
POWER GENERATION ISSUES
·
Under-Investment
Ø Stagnated
Power Generation Growth.
Ø Inadequate
Operations and Maintenance.
·
Lack of Human Capacity development
·
Non-diversified Generation Mix:
Ø Missing
sources
v Coal
v Solar
v Wind
v Bio-thermal
FUTURE
OF POWER GENERATION
Ø Power
Generation gap of 26,561MW expected to be closed by 2020. Consequently, an
annual growth of approximately 3,000MW is required.
Ø Post-2020,
it is projected that the annual growth will reduce to approximately 1,500MW, up
to 2033.
Ø It
is planned that this growth will be driven by the private sector.
Ø It
is expected that the growth will be supported by a robust commercial market
POTENTIAL
FOR INVESTMENT
Ø Refurbishment
of existing power stations and subsequent expansion.
Ø Construction
of new power generation plants.
Ø Provision
of Operations and Maintenance Services.
Ø Human
Capacity Development.
CONCLUSION
Ø As
highlighted in this presentation, it is obvious that power generation has not
developed as required.
Ø This
has necessitated the full implementation of the Electric Power Sector Reform as
a key priority of the Nigerian Government.
Ø Consequently,
there exists ample investment opportunities in the power generation sector.
