ABAH ADAH ex-rays the performance of the Niger Delta Power Holding Company (NDPHC) in the post-privatisation Power sector.
As a strategy towards plugging any infrastructure gap that might threaten the success of the power sector reform (privatisation) programme initiated by the federal government, the Niger Delta Power Holding Company (NDPHC) was established in 2005 as a fast-track sector infrastructure development company. NDPHC is incorporated under the Companies and Allied Matters Act as a private limited liability company with shareholding fully subscribed to by federal, state, and local governments (i.e. it’s government funded) with a mandate to manage the power projects tagged “National Integrated Power Projects” (NIPPs), an emergency intervention scheme involving the construction of seven (and later 10) medium-sized gas-fired power plants and associated gas infrastructure, and the critical transmission infrastructure needed to tackle the deficit and expand power sector infrastructure and evacuate the added power into the national grid.
In other words, it serves as an infrastructure booster within the electricity supply value chain-generation, transmission, and distribution to enable the country put behind its poverty of power as quickly as possible. So the company’s mandate was to develop ten power plants with a designed ISO capacity of 5, 067MW, 102 transmission lines and substations projects, and over 291 distribution-injection substations and gas infrastructure with over 22 completely self protected transformers among other critical projects.
The reconstitution of the management of NDPHC in 2016 by the current administration of President Muhammadu Buhari by no mean marked a watershed in the anals of the company as the new management led by Mr Chiedu Joseph Ugbo as the managing director (MD) stormed the scene with an unprecedented kind of aggression towards fulfilling the company’s mandate by rolling out projects most of which have been completed while others are at various advanced stages of completion across the country.
On 10th June, 2016, President Muhammadu Buhari dissolved the old management of NDPHC and appointed Ugbo as acting MD/CEO of the firm and he resumed office on Monday, 13th June, 2016.
On 25th August, 2016, the president appointed Chiedu Ugbo as substantive MD/CEO, Alh. Babayo Shehu, executive director, Finance and Administration, and Engr. Ifeoluwa Oyedele, executive director, Engineering and Technical Services of the interventionist power company.
NDPHC has taken the country to “next level’’ of re-engineering its operations with the attendant results of pulling the nation out of seemingly intractable power outage and collapse of power infrastructure in the country as most grid connected areas can now boast of 16 to 24 hours per day.
In line with the president’s vision, NDPHC has recorded and is still achieving milestones in incremental power in Nigeria through infrastructure capacity building.
On the generation front, as of June, 2019, NDPHC had installed a total capacity of 4,051.2MW from eight power plants presently connected to the National grid.The eight of the ten (10) power plants in the NIPP portfolio, along with associated gas transmission metering/receiving infrastructure projects to support commercial operation, have been commissioned and connected to the national grid, contributing over 22,000,000kWHr of energy daily subject to availability of gas fuel.
The NDPHC has continued to operate these power plants in the interest of the Nigerian economy, despite undesirable security challenges and an accumulated debt owed it by the electricity market. –NDPHC contribution represents over 40 per cent of power requirement in the grid despite the huge debt owed NDPHC by the Electricity Market.
· Many of the NIPP power plants on the national grid also provide ancillary services like spinning reserve to support the system operations, a contribution critical for stabilising the national grid.
The NPDHC has over 3000MW of generation capacity availability for deployment if the grid permits and this represents the best opportunity for the rapid improvement of power supply to the teaming Nigerians. It is important to note that completed power plants include 750MW Olorunsogo II, 450MW (Ogorode)Sapele, 434MW Geregu II, 450MW Omotosho II, 450MW Ihovbor, 450MW Alaoji, 563MW Calabar and 225MW Gbarain. Imminently completed ones include 225MW Omoku, 338MW Egbema, and 530MW Alaoji steam machines that would wrap up the total available capacity of the plants to 1, 774MW on full completion.
The intervention in the transmission subsector is equally very noticeable even from afar. NDPHC has completed 2,194Km of 330kV transmission lines and 887km of 132kV transmission lines. A total of ten (10) new 330/132kV substations and seven (7) new 132/33kV substations have also been completed with several other existing substations significantly expanded thereby adding 5,590MVA and 3,493MVA capacity at 330kV and 132kV levels respectively to the national grid.
NDPHC’s contribution to the Transmission grid system has transformed the hitherto radial 330kV/132kV grid into a more robust grid system with significant provision of alternative power flow routes which now serve as redundancies and which has resulted in a more reliable and stable National grid.
Of note in these respects are the commissioning of the over 220km long 330kV Double Circuit (DC) lines providing alternative supply route into Abuja and the FCT from Geregu, through a new Lokoja substation, a new Gwagwalada substation into the existing Transmission Company of Nigeria’s (TCN) Katampe and Apo substations with several significant expansion works on existing substation developments along this route.
There is also the construction of a 12-circuit Switching Station at Ikot Ekpene which serves as a hub for marshalling power evacuated from the power plants based at Calabar, Afam, Alaoji, and Ikot Abasi. From this hub a total of over 800km long Double Circuit lines emanate as a Power backbone to flow power generation to Jos and the North East through Ugwuaji and Makurdi in Enugu and Benue States respectively.
With the commissioning of about 95% of this grid backbone in 2016, the Nigeria transmission grid bade goodbye to the radial grid era and entered a new hitherto unattainable level of grid security, reliability and stability that seemed elusive since the commencement of Nigerian grid operations in 1969.
Thus the most recent all-time high wheeling of 5, 420. 30MW by TCN is largely a function of NDPHC’s this great intervention in the transmission subsector.
A lot has also been done in the electricity distribution segment by NDPHC. It plays important role towards enhancing the capacity of electricity distribution infrastructure in the Nigerian electricity supply industry (NESI).
NDPHC has constructed and commissioned over 350 injection substations with a combined capacity of about 3540MW across the length and breadth of this country. NDPHC has further constructed about 2,600km of 11kV and 4,600km of 33kV distribution lines for improving access to electricity and quality of power supply to consumers.
It has also enhanced distribution capacity by the installation of 25,900 Completely Self-Protected (CSP) distribution transformers all over the country thereby significantly reducing technical losses.
The 296 Distribution projects which included Injection Substations, 33kV lines, 11kV lines and associated HVDS network are embedded within the existing networks of the 11 Distribution successor companies of Power Holding Company of Nigeria (PHCN). As such, the distribution companies (DisCos) are fully involved in the commissioning and integration of the new facilities into existing networks.
In addition, the company has also embarked on some 100 projects across the country under its Distribution Intervention Projects, most of which are now completed with attendant impact of raising electricity supply to Nigerians. Today, LEADERSHIP has it on good authority that virtually every parts of the country except areas experiencing localised distribution infrastructure problems enjoy at least 16 to 20 hours of electricity, and even 24 hours suppy in some cases.
NDPHC’s intervention followed low coverage/penetration of initial distribution projects extended requests from host communities to NDPHC power stations, reconstruction of power infrastructure vandalised or damaged due to activities of vandals or insurgency, request from critical stakeholders including state governors, legislators, local governments, government agencies, community leaders, etc.
Also, the distribution value chain has received a boost with the construction of injection substations capacity added 4,082.5MVA, construction of 33kv of about 2, 643km, construction of 11kV of about 4,760km and provision of distribution transformers (100KVA,200KVA,300KVA,500KVA) giving 250MVA. In all, the number of Completely Self-Protected Transformers (CSP) provided totalled 25,900.
Recently, NDPHC also Completed Distribution Substations (SS) & Lines which include: 1x15MVA, 33/11kV Inj SS, Tambuwal, Sokoto State; 1x15MVA, 33/11kV, 1X7.5MVA Inj SS, Fegge, Anambra State; 1X7.5MVA, 33/11kV Inj SS, Potiskum, Yobe State; 1X15MVA, 33/11kV Inj SS, Gagi, Sokoto State; 1×7.5MVA, 33/11kV Inj SS. Otta, Ogun State; 1X15MVA, 33/11kV Inj SS, Angwan Dosa, Kaduna State; 2×7.5 MVA, 33/11kV Inj SS, Lamingo, Plateau State; 2X15MVA, 33/11KV Inj SS, Zaria Rd, Jos; Construction of 33kV line from Oke Aro TS to Mowe SS; 2x15MVA, 33/11kv Injection SS, Asaba, Delta State; 2x15MVA, 33/11kV Injection Substation at Okene; 2×7.5MVA, 33/11kV Substation at Kabba; 2x15MVA, 33/11KV at Confluence Beach; & and 1×7.5MVA, 33/11KV at Felele all in Kogi State.
On gas supply, NDPHC completed several gas assets including construction of metering stations and gas pipelines to its power stations. Of note is the signing of a Partial Risk Guarantee (PRG) with the World Bank to ensure regular gas supply to Calabar Power Generation Company. The risk guarantee amounting to $112 million is a form of securitization for gas supply under the Gas Sale Agreement (GSA) between NDPHC/Calabar Generation Company Limited and Accugas and it is for a period of nine months during which about 500MW additional electricity will be wheeled into the national grid for stable electricity to Nigerians.
In frantic efforts to avail more Nigerians that are not connected to the grid, especially rural dwellers access to electricity, NDPHC has also been, and is still being, involved in the implementation of federal government’s Solar Home Systems (SHS) project tagged “NDPHC, Beyond The Grid” across the country.
In all these, NDPHC has made a remarkable mark in the industry with available generation capacity of more than 7,000MW, enhanced transmission capacity that can wheel about 7,000MW and a consumption level gradually tilting towards a high level through various strategies by the managers and operators in the distribution segment.