The Niger Delta Power Holding Company (NDPHC) is set to shift the focus of the National Integrated Power Project (NIPP) towards renewable energy, with plans to deploy solar, mini-hydropower and off-grid solutions, particularly across northern Nigeria.
The move forms part of preparations for NIPP Phase 2, which NDPHC says will diversify Nigeria’s electricity generation mix and support the country’s Energy Transition Plan.
Managing Director and Chief Executive Officer of NDPHC, Engr. Jennifer Adighije, disclosed this on Wednesday in Abuja during an oversight visit to the company’s headquarters by the House of Representatives Committee on Power, chaired by Hon. Victor Nwokolo.
Adighije explained that while NIPP Phase 1 was built largely around gas-fired power generation, the second phase would expand into renewable energy to address electricity supply gaps and take advantage of the country’s renewable resources.
“Where we are currently is NIPP Phase 1, which is power generation from fossil fuels, from gas. The NIPP Phase 2, in line with the Energy Transition Plan, is where we are diversifying our generation mix and preparing to transition to renewable energy,” she said.
She said NDPHC was considering off-grid solutions, mini-hydropower projects and solar power interventions, with northern Nigeria identified as a key area of focus because of its renewable energy potential.
Adighije said NDPHC currently contributes about 4,000 megawatts to Nigeria’s installed generation capacity of approximately 12,000MW, representing about 30 per cent.
Under NIPP Phase 1, she said the company had built 10 power plants, with seven commercially operational, two under construction and one undergoing upgrades.
She also highlighted NDPHC’s investments in transmission and distribution, saying the company had completed 120 transmission projects, comprising 60 330kV substations, 31 132kV substations and 37 expansion projects.
The projects have resulted in installed transformer capacity exceeding 10,000MVA, she said.
According to Adighije, NDPHC has also implemented hundreds of distribution projects, including the installation of distribution transformers as well as 33kV and 11kV lines across the country.
NDPHC Recovers N30bn in First 100 Days
The NDPHC chief executive also outlined some achievements recorded under her administration, including the recovery of 110 abandoned containers and 216 packages within the first 100 days, which she said saved the company more than N30 billion.
Other achievements included debt recovery, digitalisation, improved procurement practices, asset restoration, completion of distribution projects and the recovery of generation units.
Adighije said NDPHC had recovered about $12 million from cross-border bilateral customers in Togo and other debtors from an outstanding debt of more than $50 million.
She added that the recovery of several turbines across the company’s power plants had contributed about 470MW to the national grid.
Despite these interventions, Adighije identified transmission constraints, low tariffs, inadequate market settlements, gas supply challenges, unpaid debts and vandalism as major challenges affecting the company.
She said NDPHC has more than 1,500MW of mechanically available generation capacity, but is allocated an hourly dispatch of only about 500MW.
The disparity, she explained, has resulted in significant suppressed and stranded generation capacity and cost the company more than N300 billion.
She therefore called for regulatory intervention to review the dispatch merit order and enable more available generation capacity to reach the national grid.
Adighije also urged the House Committee to intervene in outstanding debts owed to NDPHC by electricity market participants, including the Nigerian Bulk Electricity Trading Plc (NBET), which she said had accumulated liabilities of more than N400 billion.
She further sought the settlement of obligations arising from NDPHC assets recognised in the regulated asset base of the Transmission Company of Nigeria (TCN).
Responding to the presentation, Chairman of the House Committee on Power, Hon. Victor Nwokolo, commended the NDPHC management for its efforts to improve electricity generation.
Nwokolo said the company’s role was critical to the entire power value chain, stressing that generation, transmission and distribution must work effectively for Nigerians to enjoy improved electricity supply.
“We have also been to their power stations. And, honestly, they are taking some reasonable, very reasonable actions towards making Nigeria’s access [to] electricity,” he said.
“If they don’t generate, there’s nothing to transmit. If they don’t transmit, there’s nothing for me to distribute. So I must commend them,” he added.
The committee chairman also commended Adighije’s proactive approach to managing the company and addressing challenges confronting its power plants, citing the Alaoji power plant as an example.
He assured NDPHC that the legislature would examine the concerns raised by the company and work with relevant stakeholders to address them.
Nwokolo said the oversight visit was designed to understand the challenges confronting NDPHC and provide legislative support where necessary, rather than create an adversarial relationship with the agency.
He further commended the company for welcoming legislative oversight, describing such engagements as an opportunity for public agencies to showcase their achievements, explain their challenges and receive the necessary support from lawmakers.