Power sector loses N460.3bn as generation plummets

The estimated monetary loss in Nigeria’s power sector has risen
to N460.3bn in 2018 alone.

The data obtained from the Federal Ministry of Power, Works and
Housing in Abuja on Friday showed that between January 1 and
November 8, 2018, the sector lost N460.253bn.

The FMPWH explained that the huge financial loss was due to
insufficient gas supply, distribution and transmission
infrastructure limitations as well as water reserves issue.

It was also gathered from the Nigeria Electricity System
Operator that power generation wobbled persistently, as figures
from the NESO showed that it fluctuated between 2,500 megawatts and
3,000MW for the most part of October and November 2018.

It, however, dropped to as low as 1,927.9MW on October 29, 2018,
while the data from the System Operator put the country’s power
generation at 3,437.1MW on November 8, 2018.

The SO said peak power generation attained on November 8, 2018,
was 4,964MW.

In another report, the Advisory Power Team in the Office of the
Vice-President stated that on November 8, 2018, the average quantum
of energy that was sent out to power users was 4,014MWhour/hour,
down by 49.03MWh/h from the previous day.

The APT said 658.4MW of electricity was not generated due to
unavailability of gas.

“0MW was not generated due to unavailability of transmission
infrastructure, while 2,002.8MW was not generated due to high
frequency resulting from the unavailability of distribution
infrastructure,” the APT stated in a report made available to our
correspondent.

It added, “Nil MW was recorded as losses due to water
management. The power sector lost an estimated N1, 277,000,000 on
November 8, 2018, due to insufficient gas supply, distribution
infrastructure and transmission infrastructure.”

It said the dominant constraint on November 8, 2018, was due to
high frequency resulting from the unavailability of distribution
infrastructure, constraining a total of 2,002.8MW from being
available on the grid.

The report stated that peak average energy that was ever sent
out to power users was 4,557MWH/H on February 2, 2016.

It said the peak power generation ever attained on the national
grid was 5,222MW on December 18, 2017.

“Estimated amount lost to insufficient gas supply, distribution,
transmission and water reserves to date in 2018 is N460, 253, 000,
000,” the report added.

Power generation has been largely unstable since the beginning
of this year.

The Nigerian Electricity Regulatory Commission recently stated
that during the first quarter of 2018, the total electricity
generated was 8,511,481MWh, two per cent less than the generation
recorded in the last quarter of 2017 despite the increase in
available generation units.

NERC stated that the quarterly industry’s daily generation peak
of 5,047MW recorded on February 14, 2018, was also less than that
of the preceding quarter.

“With the decrease in generation, not surprisingly, the average
utilisation rate of the total available generation capacity
declined by 1.1 per cent from 54.4 per cent recorded in the last
quarter of 2017,” NERC stated.

It added, “Gas constraint is largely responsible for stranded
capacity that led to the decline in generation. Other factors
limiting generation include the transmission line and distribution
networks limitations and water management.”