Connect with us

Markets

Power Generation Drops to 108MW Over Heavy Rainfall, Others

Published

on

electricity
  • Power Generation Drops to 108MW Over Heavy Rainfall, Others

The national electricity grid witnessed another collapse on Tuesday that resulted in the drop in power generation from over 3,000 megawatts to just 108.7MW.

This is coming as the Federal Government signed Put and Call Option Agreements with two power firms, Afrinergia and CT Cosmos, for the construction of 50MW and 70MW solar power plants, respectively.

Industry data obtained by our correspondent showed that power generation plunged from 3,069.5MW on April 8, 2017 to 108.7MW on April 9, and moved up marginally to 240MW the next day.

It was learnt that heavy rainfall at three transmission stations led to load reduction that prompted high frequency in the system, a development that triggered the collapse of the electricity grid, the first to be recorded in the second quarter of this year.

Investigation revealed that the country’s electricity grid collapsed 10 times in the first quarter of this year.

Tuesday’s report on the April 9 system collapse stated that the rainfall affected the Onitsha, Benin and Alaoji transmission stations, leading to a cumulative load reduction of 384MW in the affected areas.

It stated, “There was heavy rainfall reported from Onitsha T/S, Benin T/S and Alaoji T/S, which led to area load reduction from 70MW to 15MW, 100MW to 20MW and 300MW to 51MW, respectively.

“This led to a rise in system frequency and voltage, which subsequently resulted in the transmission line tripping as indicated in reports from the stations. At 06:21hours, the system frequency sharply dropped from 51.03Hertz to 47.48Hz followed by the system collapse.”

The development, according to officials of the Power ministry, worsened electricity supply in many areas during the period as the average power sent out on April 9 fell by 698MW-hour/hour to 2,638MWh/h.

Meanwhile, it was learnt that the two firms that signed the PCOAs with the Federal Government on Tuesday were among 14 companies that had earlier signed Power Purchase Agreements with the Nigerian Bulk Electricity Trading Plc to generate up to 1,125MW of solar power.

The signing of the PCOAs by the two firms was the next stage after the PPAs were signed at a ceremony presided over by the Minister of Power, Works and Housing, Babatunde Fashola, in Abuja on Tuesday.

The latest agreements serve as indemnity for the project promoters to go ahead with their construction and ultimately bring their power to the grid.

According to the agreement, Afrinergia is to construct a 50MW solar farm in Nasarawa State, while CT Cosmos’ 70MW solar power project will be sited in Plateau State.

Fashola said the PCOA signing was in furtherance of the plan to generate at least 30 per cent of Nigeria’s electricity from renewable energy sources.

The Managing Director of Afrinergia, Mr. Bestman Uwadia, stated that the signing of the agreement would give his company the confidence to conclude the solar plant located in Onyi, Kokona Local Government Area of Nasarawa State.

He said the company could transmit the first ever solar power into Nigeria’s national grid in the next six months.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

Published

on

Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

Continue Reading

Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

Published

on

Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

Continue Reading

Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

Published

on

Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending