Economy
Nigeria’s Power Generation Plunges by 16.4%: Load Shedding Crisis Looms
Electricity Distribution Companies Grapple with Load Shedding as Power Generation Falls to Critical Levels; PSGN’s Acquisition of KEDCO Offers Hope for Improved Efficiency and Reliability.
Nigeria’s electricity generation declined by 16.4% week-on-week to 3,501.20 megawatts (MW) from 4,187.6 MW recorded on Thursday last week.
The decline in power output can be attributed to various factors, including the dilapidated state of power plants and insufficient gas supply to thermal plants.
To better manage the distribution of the limited electricity, the Electricity Distribution Companies (DISCOs) have been compelled to resort to load shedding.
This measure aims to distribute the limited electricity available to consumers at different times, providing a temporary but imperfect solution to manage the shortfall.
In the midst of this challenging situation, the Nigerian Electricity Regulatory Commission (NERC) has received applications for rate review from eleven DISCOs.
These requests are founded on the necessity to consider changes in macroeconomic parameters and other factors impacting the companies’ quality of service, operational capabilities, and long-term sustainability.
Meanwhile, Powercom Smart Grid Nigeria (PSGN) has announced its acquisition of Kano Electricity Distribution Plc(KEDCO).
PSGN is a subsidiary of Powercom and specializes in delivering an “end-to end” Smart Grid/Smart Metering turnkey solution.
In a statement made available to the media, PSGN said the acquisition presents a significant opportunity for KEDCO to implement a comprehensive turnaround plan aimed at improving performance and efficiency.
It stated: “PSGN Turnaround Plan encompasses a strategic approach to address the challenges faced by KEDCO and transform it into a highly efficient and financially viable electricity distribution company supporting 5 million customers.
“The plan focuses on revenue enhancement, operational performance optimization, revenue collection, customer service, and overall system reliability.PSGN will supply KEDCO smart electricity endpoints including the full backbone infrastructure to manage the grid.
“The project is meant to upgrade the existing distribution grid into a modern platform, addressing services such as: Revenue Enhancement, Reduction of Energy Losses, Debt Recovery, Reduction of Outages, Grid Optimization, Asset Recording, Asset Protection, Peak Load Management; Workforce Automation, reducing operational expenditure and improving customer service. PSGN ‘turnkey’ solution includes the Vending Platform and a Control Room with GIS visualization for grid management.”