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Power Output Drops by 30% in 2Q, Says Report

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PHCN Power Plant

THE power sector recorded a drop of 30.01 per cent in the second quarter (Q2) due to poor generation caused by militants’attacks in the Niger Delta, a new report has said.

The report said the attacks led to the shut down of pipelines and the shut-in of gas that powered thermal plants between last April and June.

A report, released by the Transmission Company of Nigeria (TCN), stated the status of power generation and distribution during the period.

According to the report, 2,046,821,132.72 kilowatts-hour (kwh) of electricity was generated in April with average daily output of 68,227,371.09 kwh.

In May, grid output was 1,765,782,918.34 kwh with average daily production at 56,960739.30 kwh while in June production was 1,426,183,518.94 kwh and daily output was 47,539,450.63 kwh.

According to the data, Egbin Power Station made the highest contribution to the national grid with 15.81 per cent, Shell’s Afam VI Power Station came second with 13.81 per cent and Geregu Power station provided the least at 0.46 per cent.

However, Afam I-V, Gbarain, AES, Rivers IPP and Omoku Power Stations operated at zero levels. A new Independent Power Plant, Paras Energy, contributed 0.94 per cent. Paras Energy, on the Lagos–Ibadan Expressway, has a bilateral Power Purchase Agreement (PPA) with Eko Electricity Distribution Company to supply its generated electricity.

Generation output from the thermal power stations, especially those outside the Niger Delta, continued to be adversely affected by pipeline vandalism, the report said.

In May, energy dipped by as much as 13.73 per cent compared to April’s output.

Shell’s Afam VI Power station beat Egbin Power Station by making the highest contribution to the grid with 17.32 per cent.

Egbin came second with 15.63 per cen. The new entrant, Gbarain Power Station (one of the NIPP plants constructed by the Niger Delta Power Holding Company), contributed the least with 0.38 per cent while Olorunsogo Power Station, which contributed 0.72 per cent in April, made no contribution.

Total generation went down by 19.23 per cent in June compared with energy generated in May. However, for the first time, Jebba Hydro Power Station contributed the highest energy into the grid with 15.57 per cent.

Egbin came second with 14.58 per cent, while another hydro station, Kanji power station, came third with 14.58 per cent. Omoku power Station resumed production with the contribution of 0.18 per cent.

Throughout the second quarter, AES Power Station, Rivers IPP, and Afam 1-V did not produce any power. The hydro power stations steadily improved their contributions to the grid in the second quarter from 21.78 per cent in April to 23.10 per cent in May and 32.46 per cent in June.

The hydro power stations made the highest contribution in June. Thermal plants (legacy stations) experienced a marginal rise from 30.71 per cent in April to 31.66 per cent in May and dropped to 28.77 per cent in June.

The National Integrated Power Plants (NIPP) produced 20.72 per cent in April, went down to 17.33 per cent in May and dropped marginally to 17.06 per cent in June.

The most significant difference in contribution during this period under review was in the independent power plant (IPP) group. In April, the group contribution was 26.80 per cent and it went up marginally to 27.91 per cent in May and dropped drastically to 21.72 per cent in June.

During the quarter, the national grid witnessed 14 total system collapses and four incidents of partial system collapse.

“In April, the grid witnessed three instances of total system collapses and no incidence of partial system collapse but in May, the grid witnessed six instances of total system collapses and one incident of partial system collapse while in June the grid witnessed five instances of total system collapses and three incidents of partial system collapse. The incidents of total and partial collapses occurred, especially due to generation limitations,” the TCN said.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Energy

Fuel Scarcity: Petrol Sells N220 Per Litre in Nsukka

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Premium Motor Spirit, otherwise called petrol, now sells for between N200 and N220 per liter at the independent marketers’ service stations in Nsukka, Enugu State.

The News Agency of Nigeria is reporting the hike in the price against the official pump price of N162 per liter.

It said it started about a fortnight ago due to the scarcity of the commodity in the town and its environs.

Some residents of the town expressed deep worry over the development in separate interviews with NAN on Wednesday.

A civil servant, Stephen Ozioko, said the situation had further compounded the economic difficulties in the area.

Ozioko said many private car owners had been compelled to park their vehicles at home and move around in public transport.

He said: “Since the scarcity started, I decided to park my car and take public transport to the office and back home. N220 per liter is exorbitant and I cannot afford it considering my salary as a civil servant. I shall continue to use public transport until the situation returns to normal.”

A building material dealer, Timothy Ngwu, said the development had also led to an increase in transport fare in the area.

Ngwu said: “Some people now trek from Nsukka Old Park to Odenigbo Roundabout because of the 100 percent hike in fares from N50 to N100 by tricycle.

“Before now, transport fare from Nsukka to Enugu was N500, but transporters now charge between N800 and N1000.”

Also, a commuter bus driver, Victor Ogbonna, described the scarcity and hike in the price of petrol as “unfortunate and an ugly development”.

Ogbonna added: “Today, only a few filling stations are selling the commodity in Nsukka town, while others are shut.”

He alleged that some filling stations, which claimed to be out-of-stock, were selling to black marketers at night.

He said: “This is why black marketers have sprung up everywhere in the town, selling the commodity for about N300 per liter.”

NAN reports that virtually all the major marketers in the area have stopped the sale of petrol, claiming to be out-of-stock.

The people called on the government to urgently intervene in order to bring the situation under control and also put an end to its harsh economic effects on the messes.

NAN.

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Energy

DPR Targets N3.2T Revenue by Year-End

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Nigeria’s Department of Petroleum Resources (DPR) will hit the N3.2 trillion revenue target by December 2021, according to its Director/ Chief Executive Officer, Mr Sarki Auwalu.

Auwalu made the disclosure when he led a delegation of the DPR management team to the Executive Secretary of Petroleum Technology Development Fund (PTDF), Mr Bello Gusau, in Abuja on Wednesday.

He said that 70 percent of the revenue projection had already been met. “Last year, we exceed our revenue budget. We were given N1.5 trillion but we were able to generate N2.7trillion.

“This year, our revenue budget was N3.2 trillion. By the end of August 2021, we have generated up to 70 per cent.

“So, we with September, October, November and December, it is only the 30 per cent that we will work over,’’ he said

He noted that the government took advantage of fiscal terms within the old and new legislation, thereby creating a level of increased signature bonuses.

“We reorganise the work programme that is normally being done in the DPR to key into the new operational structure as we see it in the bill, now an act.

“That programme is being handled by the planning and strategic business unit as against what we use to have because the entire work programme is supposed to show not only technical but also commercial and viability of oil fields and to guarantee the return on investment for investors.

“We have also created an economic value and benchmarking unit to key into the new fiscal provisions of the PIA,’’ he said.

Commenting on capacity, Auwalu said the country stands at the advantage of exporting skills to emerging oil and gas countries across Africa with proper implementation of the newly passed Petroleum Industry Act.

This, he said, the DPR was ready to partner with the Fund to continue to build capacity in the oil and gas sector

He noted that the Federal Government was determined to create leeway that would encourage investors and drastically improve the nation’s petroleum industry.

He further noted that no fewer than 300 legal battles in the oil and gas industry in Nigeria, which had been stalled for the past 20 years in courts, had been resolved through alternative dispute resolution.

According to Auwalu, the DPR is strategising well to ensure effective implementation of the PIA.

Responding, Gusau commended the DPR for enabling the industry and enhancing business activities in the oil and gas sector.

He said that DPR remained the head of the oil and gas industry in Nigeria adding that the Fund was grateful to benefit from the wealth of ideas from DPR.

“The last time we visited, we had a good discussion and issues raised are being implemented like tracking the inflow of funds in signature bonus accounts.

“We extended the meeting and involved ministry of Finance, Accountant General office and even the Central Bank of Nigeria (CBN).

“Sitting at field development plans and attending significant meetings, helped us to know where and what the industry is trying to do and it also helps to inform our decisions in training and capacity plans,’’ he said

He urged the DPR to continue on its effort to ensure an efficient and productive petroleum industry in Nigeria

He assured collaboration with all as the head of the implementation committee of the Petroleum Industry Act. (NAN)

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Energy

Lagos Signs MoU With Energy Firms On Power Supply

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Lagos State Government, through its Ministry of Energy and Mineral Resources, on Tuesday signed a Memoranda of Agreement (MOA) with Ikeja Electric and Sahara Power Group to increase power supply and provide uninterrupted power to residents of the State.

The agreement between Lagos State Government and the energy firms signed will also include the distribution of free prepaid meters to low-income areas, with the pilot phase of 20,000 meters to be distributed in the Alimosho Local Government Area of the State.

Speaking during the signing of the agreement at the Lagos State Secretariat, Alausa, the Commissioner for Energy and Mineral Resources, Mr. Olalere Odusote, said the aim of the agreement is to increase power supply to at least 22 hours daily, from about eight to 12 hours daily.

The Commissioner said the implementation would start immediately, adding that Lagos State Government has identified a number of feeders that can provide power in 20,000 low-income areas with plans to replicate the initiative across the state.

He said: “This Memoranda of Agreement is to ensure the provision of uninterrupted power to residents, especially the low-income areas. It is also part of efforts to solve the problem of metering and infrastructure deficit to ensure these areas get power supply which is also measurable.

“The 20,000 meters have been procured by the state government and would be distributed free to low-income areas in Alimosho Local Government Area as the pilot phase. Our intention is to replicate this gesture in other areas of the state once the pilot phase is successfully executed.

“We have identified a number of feeders that can provide power in these communities and implementation would start immediately.”

Also speaking, the Managing Director of Ikeja Electricity Distribution Company (IKEDC), Folake Soetan expressed the firm’s readiness to support Lagos State Government in ensuring uninterrupted power supply to residents of the State.

In his address, the Managing Director of Sahara Power Group, Anthony Youdeowei, said his company will be transparent in its dealings with the Lagos State Government and Ikeja Electric to provide power supply for Lagosians.

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