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.