Apart from boosting of their installed electricity
capacity of 13,000MW, generation companies (GenCos) have said that they
have altered their business practices to the extent that
non-essential, non-critical employees now work from home due to COVID-19
pandemic.
They also said that they have a strong track record of preparing for
numerous emergencies like the COVID-19 pandemic, as well as countless
other emergencies.
“This is evidenced in ramping up to a total available capacity of
over 7,500MW and gross generation installed capacity of over 13,000MW.
In preparation for the current situation, the GenCos had opened talks
with the Federal Government and other power sector stakeholders to
ensure that power plants have the resources they need to ensure
generation of power.
They said the GenCos are ever ready to partner with the Federal
Government and relevant stakeholders to evolve strategies to fast track
the quest for optimal utilisation of available and recover unavailable
installed generation capacity which could make the nation be listed on
the comity of countries with adequate and stable electricity supply in
the world,” the statement noted.
In a statement, the Executive Secretary of Association of Power
Generation Companies (APGC), Dr Joy Ogaji, said that the generation
firms have also established telework protocols, to the extent that
non-essential, non-critical employees would work from home, while
implementing their “continuation of services” plan to ensure operations
and service delivery continue as usual to prevent even more economic
disruption.
GenCos also assured that they have a strong track record of
preparing for numerous emergencies like the COVID-19 pandemic, as well
as countless other types of emergencies. While allaying the pessimism
associated with electricity supply during challenging times in Nigeria,
the GenCos, promised the improvement of power generation from their
thermal and renewable (Hydro Power Plants) sources across the country.
“There is, however, a shortage of gas supply for thermal generation
companies. Thermal power from gas and steam turbines account for about
80 per cent of Nigeria’s power generation. Gas unavailability greatly
hinders power generation in thermal power plants. Gas cost constitutes
over 60 per cent of wholesale electricity tariffs in Nigeria. Hence,
what goes on in the gas sector has huge implications for the Nigerian
Electricity Supply Industry (NESI). Gas suppliers demand upfront payment
(pre-payment) before they make gas available and the GenCos cannot
afford to meet this request given the liquidity issues in the NESI.
From the GenCos point of view, we are willing to invest to increase
the capacity of our power plants and provide necessary investments to
cater for maintenance and the repair. Generation companies are willing
to work with relevant stakeholders such as the Department of Petroleum
Resources and the Nigerian National Petroleum Company (NNPC), two
critical stakeholders with oversight over gas resources, to develop
novel approaches to making gas available for generation companies. Gas
and transmission (evacuation) are critical and urgent needs outside the
control of the generation companies and which calls for urgent
government intervention. GenCos are patriotic corporate citizens with
patriotic zeal and are willing to build the nation together with the
government,” Ogaji, said.
Aside gas molecules, the transmission firms, said, GenCos have other
challenges which government is actively engaging to resolve.
For the GenCos, there is need for an apolitical enabling environment
through the design and implementation of viable policies, strong and
experienced leadership and coordination of the sector.
“This requires effective collaboration and coordination across
interrelated ministries. If answers to GenCos most pressing/pertinent
questions such as: Can we be fully dispatched? Can we get gas? Who is
paying for the power? can be sorted out soon, then power supply issues
of the nation will be a thing of the past.
“APGC will continue to work with power sector stakeholders to gather
and share up-to-date information, best practices and guidance to support
them in safely maintaining operational integrity. It is our earnest
desire that the pandemic be resolved as soon as possible.
“We also commend the tireless efforts of the Federal Government
through its agencies; Nigeria Centre for Disease Control (NCDC),
Ministry of Health, World Health Organization(WHO), state governments
and other agencies as we all respond to COVID-19 and power through this
crisis together,” Ogaji noted.
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