Business Hilights

Tracking Nigeria's Headline Business News Online

dam scheme

Gencos now reducing generation due to rejection by Discos

Ad 2
Ad 3

To limit increasing wastages due to growing rejection of loads by power Distribution companies (Discos), some power Generation companies (Gencos) has started reducing investments in power generation as part of cost economics.

Leading hydro electric power producers, Jebba and Kainji Dams Gencos recently dropped generation by 416.4MW

Otherwise, contrary to the dream of the federal government is raising power generation, Kainji and Jebba hydro power plants are cutting down on the quantum of power they generate by about 320 megawatts and 96.4MW, respectively.

Discos had based their rejection of power loads to instances of excess supplies to areas and districts that need less at a given period.

They argued that accepting excess power load which cannot be distributed particularly in areas of poor demand is a bad business practice after all.

Defending why they are shrinking generation, core investors in both dams, Mainstream Energy Solutions Limited, said they often reduce about 416.4MW of electricity due to frequent requests from the National Control Centre in Osogbo.

Both the firm’s Operations Supervisor for Jebba, Mr. John Onimisi, and Chief Operating Officer, of the company, Mr. Jose Villegas decried that both plants were not allowed to operate at their optimal capacity due to load rejection by Discos.

Villegas said, “We have eight installed power generation units at our Kainji station and six at Jebba, making a total of 14 units under the management of the MESL. The total installed capacity at Kainji is 760MW, while at Jebba, it is 578.4MW, and the sum of these figures is 1,338.4MW.

“The available capacity at Kainji and Jebba is 440MW and 482MW, respectively, meaning that the two plants generate 922MW. This is because the number of units available at both Kainji and Jebba are four and five units, respectively. We have the ability to produce more. But due to load rejection, we always receive directive from the NCC to reduce generation,” Onimisi, MESL Operations Supervisor for Jebba Station noted.

Business Hilights is an online news channel conceptualized and structured to report and track on a daily basis; latest developments in critical business sectors to serve as a one stop news gateway for governments, foreign and indigenous investors.