NDPHC, Offtakers Sign Pact To Commercialise 200MW Of 2,000MW Stranded Power

The Niger Delta Power Holding Company Plc (NDPHC) has entered into an agreement with new offtakers with the aim to free and commercialise about 200mw of its 2,000mw stranded electricity by the end of this year.

Managing Director of the NDPHC, Jennifer Adighije, said this will be made possible with the signing of new Power Purchase Agreements (PPAs) with eligible off-takers and traders.

Adighije, who disclosed this during a visit to the newly established Nigerian Independent System Operator (NISO) in Abuja, stated that the agreements, which are currently awaiting regulatory approval, were part of a broader strategy to unlock stranded capacity, improve liquidity, and ensure commercial sustainability of the government-owned generation company.

Recall that the NDPHC’s boss had in May this year bemoaned the abysmal uptake of electricity from the electricity market by the electricity distribution companies, saying this has significantly weighee down the company’s operations.

Adighije, who led a delegation of senior executives to strengthen collaboration and discuss sector challenges with the leadership NISO, said: “Now that we’re also improving our mechanical availability, we can significantly improve on commercialisation of our stranded electricity.

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“The Electricity Act (EA) has also empowered us now to go into successful bilaterals with bankable customers, off-takers and traders and I can tell you that we have already signed some PPAs with some traders and some off-takers, which are before the regulator for approval. I’m sure you know that for us to activate those transactions, we will need to get the approval of the regulator, which is already ongoing.

“So before the end of the year, we should be able to commercialise about 200mw of our stranded electricity, which are (awaiting) approvals before the Nigerian Electricity Regulatory Commission (NERC) as we speak.”

She noted that the company’s recent improvement in plant availability has positioned NDPHC to ramp up supply and meet off-taker demands once regulatory greenlight is received, adding that the revival of key assets, including the Omotosho and Alaoji power plants, will further enhance generation capacity.

Adighije appealed to NISO to support improved dispatch levels, especially given the company’s absence of a formal PPA with the Nigeria Bulk Electricity Trading Plc (NBET), emphasising that without stable offtake arrangements, much of NDPHC’s available capacity will remain underutilised.

Stressing that the company was being heavily owed and only able to earn about 30 per cent of its invoices that are presented, Adighije stated that once the NDPHC is able to unlock some of its ongoing commercial transactions and its cash flow improves, all its obligations to partners and stakeholders will be met fully.

Adighije noted that part of the reasons for the visit was to extend a handshake to the new management of the new organisation and to express the company’s readiness to work with NISO.

“We’re here to express our readiness to work with you to achieve success in office. We know that the sector is rapidly evolving, driven by the nuances of the passing and implementation of the Electricity Act, of which Gencos have a very pivotal role to play.

“NDPHC being essentially the backbone of the power sector as the government-owned generation utility company, it’s actually imperative that we are able to establish and reinforce our working relationship, which is why we are here,” Adighije added.

She emphasised the importance of forging a strong, collaborative relationship under the newly inaugurated NISO leadership and seeks for a more nuanced understanding of the bureaucratic limitations that government-owned power firms often encounter.

NDPHC chief also called attention to the disparities in treatment between public and private generation companies, urging NISO to reflect the company’s vast contributions to Nigeria’s transmission infrastructure when issuing directives or enforcing compliance.
Adighije noted that the implementation of the Electricity Act had further elevated NISO’s role, particularly in shaping the evolving energy market.

She stressed the need for regulatory fairness and called for greater sensitivity to the procedural bottlenecks public firms face, particularly in procurement and financial approvals.