NIPP: Jonathan commissions Geregu power station in Kogi
President Goodluck Jonathan yesterday commissioned the 434MWs Geregu 2 Power Station, which is the first of a series of commissioning ceremonies scheduled for other plants under the National Integrated Power Plants (NIPP).
At the ceremony in Kogi, President Jonathan assured that the event is bringing to a gradual end some of the many problems that had plagued the NIPP in the past, and assured the commissioning of the NIPP plants before first quarter of next year.
The 500MWs power plant at Omotosho is next on the fleet of plants for commissioning.
According to the President, the Geregu 2 plant plays an important role to strengthen the power supply to the residences, commerce and industries in the Kogi region as well as to the Nigerian national grid.
'With a capacity of 434 mega watts (MW), in addition to the already existing Geregu 1 Power Plant that started operation back in 2007 with 414MW, this plant will play an important role to further improve on the unreliable power supply in Nigeria,' he said.
He recalled the initial challenges faced in the execution of the NIPP programme, noting that the plants under the scheme would add at least 5,000MW in months to come.
He said the commissioning was a significant addition to the nation' s quest for regular power supply. 'We recognize the critical role of power in economic development. Without power, we cannot industrialize.'
He added: 'The NIPP projects were stalled for two years when the Revenue Mobilisation, Allocation and Fiscal Commission took the Federal Government to court over deduction from the excess crude account for the NIPPs. We are celebrating this today, but not without lots of challenges. At a time, the road was not able to carry the turbines. There were no properly planned gas infrastructure programme as well as land issues with the communities'.
He noted that with the handover of certificates to the new owners of GENCOS and DISCOS on Monday, the power sector reform was on course.
He disclosed that: 'The NIPPs we are commissioning will be privatised between now and first quarter of next year. The hope that one day we will have stable power supply is gradually becoming a reality, with the successful privatization of GENCOS and DISCOS'.
The generation component of NIPP was originally conceived as complete gas to power packages that will harness the underutilized natural gas reserves in the Niger Delta region to produce the much-needed electricity for the nation's economic growth.
The generation projects portfolio of NIPP is made up of 10 power stations, which are scheduled to be privatized afterwards.
At the end of the privatization of the 10 power plants next year, NIPP would venture into another phase of its existence. The Guardian learnt that the Nigerian Electricity Regulatory Commission (NERC) has granted the project approval to venture into hydropower and transmission projects as against the initial fears that the agency would wind down after completing and privatizing the 10 plants. A greater percentage of the funds from the privatization of the NIPP plants would be channelled to the next phase of projects next year.
Minister of Power, Prof. Chinedu Nebo said the ceremony was a commitment of a well thought out policy framework. The project is expected to boost power for economic activities.
'NIPP's contribution to the national grid is 1,600MWs on a regular basis and better days are ahead. The Transmission Company of Nigeria (TCN) has been strengthened. I appeal to our compatriots to appreciate the efforts of government. The success of the NIPP project has made it imperative to retain the programme.
'Power generation has improved in the country with the contribution of the NIPPs adding 1,600MW to the national grid. Efforts are already being made by the Federal Government to carry out maintenance and overhaul the privatised power plants. We see the handover of licenses of PHCN assets to the new owners as the beginning of new things where everyone will have access to regular electricity. As the private sector, the government will provide a friendly environment.'
He recalled how NIPP was moribund before the current government came on board.
The Managing Director of the Niger Delta Power Holding Company (NDPHC), James Olotu, recalled that the Geregu Phase 2 power station project was initiated in 2006 as the second phase development to the 414 Geregu Phase 1 power station to add three more Siemens type V94.2 gas turbines to complete the Geregu power station as originally conceived.
He said: 'However, as the project was to be funded under the NIPP with a different ownership structure from the first phase plant, the Phase 2 power plant was therefore built as a fully independent stand-alone plant.
'Construction works commenced on site on August 2010 and progressed rapidly according to schedule after overcoming the early challenges of having to coordinate the frequent necessity of rock blasting at the site with the operations requirements of the running Phase 1 gas turbine unit. The first gas turbine unit plus the common systems went into full commercial operation upon the conclusion of final completion tests on April 3,2013, while the other two units were completed and put to commercial use on May 14, 2013.'
The National Economic Council approved the funding of NIPP projects from the Excess Crude Oil Account, which belongs to the entire federation jointly, and the setting up of Niger Delta Power Holding Company as a special purpose vehicle (SPV) for managing the investment in the process, on behalf of the federal, state and local councils, in line with best practices or corporate governance.
The shareholders of NDPHC are therefore, the federal and all the 36 state governments with the state governments also representing the interests of the local councils.
The National Integrated Power Project was conceived in 2004 as a fast-track government funded initiative to add significant generation, transmission and distribution capacity to Nigeria's electricity supply system.
This is sequel to the power sector reform initiative aimed at transforming the inefficient public sector run monopoly into a more efficient competitive electricity industry that is private sector led but with adequate government regulation to ensure that the industry's growth is aligned closely with the nation's social development objectives.
A fact sheet from the NDPHC noted that: 'To ensure the smooth and sustainable take off of the power sector reform agenda, it was considered necessary that the existing power infrastructure capacity, which was at the verge of collapse had to be urgently shored- up with a massive but well-coordinated government investment in all the facets of the supply chain. A fairly stable electricity industry with a demonstrable growth potential was considered the basis for creating the enabling environment that will attract the much needed private sector investments in the industry and hence guarantee the success of the sector reform agenda.
'Gas feed for the power station is from Oben-Ajaokuta pipeline. While the existing NGC's Geregu gas pressure reduction and metering station built for Phase 1 power plant is capable of supplying the additional gas requirements of Phase 2 plant, some modifications for separate metering trains for the gas sales lines for the two connected power plants are currently being undertaken at the metering station.'
The generation projects portfolio of NIPP is made up of 10 power stations (approximately rated capacities at ISO conditions): Calabar (630MW), Egbema (378MW), Ihovbor (504MW), Gbarian (252MW), Sapele (504MW), Omokunu (252MW), Laoji (1076 MW), Olorunsogo (750MW), Omotosho (500MW) and Geregu (434 MW).
Olotu said the projects are also accompanied with gas pipeline constructions from ELP system and the gas fields at Adanga offshore, Egbema, Izonbe, Gbarian-Ubie, Oredo, Oben to the power plant, including the required gas pressure reduction and metering stations (GPRMS).
According to him: 'There is a switch yard to evacuate the outputs of the gas turbine generators to the national grid at 330kV via the existing switch yards for the Geregu Phase 1 plant and Ajaokuta 330/132 Kv transmission substation.
'Soon, Abuja and other parts of the FCT will be enjoying the full benefit of the additional power generation from Geregu when the few remaining links are completed by October ending. The project also includes the modification of the existing NGC's gas station to provide independent metering and facilitate steady gas supply to the new power plant.'
Earlier, Kogi State Governor, Captain Idris Wada, tasked Jonathan to personally intervene to revive the Ajaokuta Steel Company and bring it to full operation.
Wada also stressed the need for the steel company to contribute to the nation's economic development.