The Niger Delta Power Holding Company Limited (NDPHC) has disclosed that out of the 4,000 megawatts of electricity predominantly available from the National Integrated Power Projects (NIPPs), a meager average of 700MW is being dispatched. The primary cause for this shortfall, according to the NDPHC, is the refusal of power distribution companies (Discos) to accept the electricity load.
The NIPPs, which fall under the management of the NDPHC, are responsible for generating the 4,000MW of power.
Regrettably, approximately 3,700MW of the produced electricity is being rejected by the Discos. The NDPHC operates as a private limited liability company, with federal, state and local governments as its shareholders, and it manages the power projects known as 'National Integrated Power Projects.'
In their recent report titled 'Maximising National Integrated Projects,' obtained by a news media outlet in Abuja, the NDPHC highlighted load rejection by the Discos as one of the significant challenges faced in electricity generation and operations.
Despite the NIPPs' installed capacity being around 4,000MW, with most of it available except for maintenance outages, the System Operator (a part of the Transmission Company of Nigeria) dispatches an average of only 700MW due to the Discos' refusal to take more load.
As a result of this persistent issue and other transmission constraints, Nigeria's power generation and supply from the national grid have remained relatively low, fluctuating between 3,500MW and 5,000MW. This is far below the enormous electricity demand of the approximately 200 million citizens in the country.
Although the power generation and distribution sectors were privatized in November 2013, Nigerians have continually expressed disappointment in the exercise. The NDPHC's latest report emphasized that inadequate dispatch and irregular load rejection by the Discos severely impact the company's revenue generation capacity.
