Electricity: NERC approves 450mw deal to halt Zungeru plant shutdown

The Nigerian Electricity Regulatory Commission has okayed an interim deal for the procurement of 450 megawatts of electricity from Zungeru Hydro Electricity Generation Company Limited.

This was contained in the notice order, NERC/2024/044, signed by the Vice Chairman of NERC, Musiliu Oseni.

The commission said that the approval was important to prevent a newly completed Zungeru hydropower plant with a capacity to generate 650 megawatts from shutdown.

Accordingly, the Commission said that approval is for 105 days commencing from 0.00Hrs of May 16, 2024.

“Given the overriding public interest, the Commission has granted a special dispensation that permits the Independent System Operator of the Transmission Company of Nigeria to assume responsibility for the administration of settlement for power wheeled from ZHEGC for an initial period of 105 days commencing from 0.00Hrs of the 16th May 2024,” the NERC directive reads partly.

To avoid the perpetual practice of limiting DisCos load offtake as a corrective mechanism for system imbalances, the commission “directs the TCN-ISO to enter into an interim energy sales agreement with ZHEGC for up to 450MW of energy and capacity to address the imbalances currently experienced between generation and offtake, thereby further strengthening grid management. The agreement shall be on a best-effort basis.

“The commencement date for the interim agreement is 16 of May 2024 and shall be in effect till the 31 of August 2024 in the first instance”.

Recall that the Minister of Power, Adebayo Adelabu in May said the completion of ZHEGC, Nigeria’s second hydropower after Kainji dam, is an additional 625MW to the national grid, increasing the country’s electricity generation to 4,800MW from 4,200MW.