Mainstream takes over $1.3bn Zungeru Power Plant
Mr. Usman Umar, the Executive Director of Corporate Services at Mainstream, guided journalists through the plant, emphasizing that this acquisition aligns with the company's commitment to maintaining a leading position in the country's electricity generation sector.
Situated in the historic town of Zungeru in Niger State, the power plant, designed to produce 700 MW, now falls under Mainstream's operational purview.
When discussing the implications of the concession, Mr. Umar explained its role in advancing Mainstream's objectives for growth in clean energy generation. He noted the strategic importance of this move in positioning the company as a key player in the nation's power generation landscape.
He said, “Two or three years ago, the company decided to pursue a growth programme. We wanted to grow. Growth can be through acquisition or organically.
“We have the feeling of satisfaction that you derive from setting an objective and achieving it.”
The ED affirmed his company's dedication to efficiently operate the newly constructed Zungeru plant, funded by a Chinese loan, in the best interest of the Nigerian economy.
The concession for the Zungeru Power Plant, the latest hydroelectric facility in the nation, was secured by Penstock Energy, a wholly-owned subsidiary of Mainstream Energy Solution Limited.
The power plant boasts four units and is supplied by a substantial dam with a reservoir capacity of 10 billion cubic meters.
With the introduction of Zungeru, the ED emphasized that hydropower has emerged as the primary source of electricity in the country. Given the global shift towards renewable energy, he advocated for the encouragement of more hydro power plants.
Addressing the challenge of electricity transmission, Mr. Umar assured continued support from Mainstream towards the federal government's initiatives aimed at fortifying the national grid.
He pointed out that if power generators escalate electricity generation without an enhanced capacity of the Transmission Company of Nigeria to efficiently distribute such power, the businesses of generation companies would face setbacks.
Mr. Umar expressed confidence in the Siemens deal and the new agreement with the Chinese, anticipating a substantial increase in transmission capacity. He emphasized that this expansion would be in the best interests of stakeholders in the industry and, particularly, consumers.