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power Transmission complex

Discos load rejection may frustrate Siemens multi-billion dollar deal

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Experts in the nation’s power sector have started considering factors that may have been holding back German giant, Siemens in taking off the sealed presidential power deal.
Some aver that the fear of load rejection by power distribution firms may have a hand as the illicit practice seems to have become a norm in the industry which experts say, is a serious drawback to any meaningful foreign investors.
Only weekend, about seven power plants could not generate a total of 720 megawatts on Sunday as a result of low load demand by the electricity distribution companies. The latest data obtained from the Nigerian Electricity System Operator (NESO) showed that the power plants on the national grid generated 4424.2MW as of 6am on Sunday.
A total of 1952.5 megawatts of generation capacity was idle as of 6am on Sunday as a result of gas constraints, low load demand by Discos and water management. The power plants affected by the Discos’ low demand included two of the country’s four hydropower plants, namely Shiroro and Jebba. Others were Odukpani (NIPP), Geregu I, Afam IV&V, Geregu II (NIPP), and Rivers IPP. Eight power plants did not generate electricity as of 6am on Sunday, according to the system operator. The idle plants were Alaoji, Ihovbor, Gbarain, Ibom Power, ASCO, AES, Trans-Amadi and Egbin ST6. The nation generates most of its electricity from gas-fired power plants, while output from hydropower plants makes up about 30 per cent of the total generation. The Nigerian Electricity Regulatory Commission, in its recent Guidelines for Implementation of Economic Merit Order Dispatch and Other Related Matters, said Discos that reject electricity load due to constraints in their networks would have to pay for the capacity charge of the rejected energy.

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