NDPHC targets solar, mini-hydro projects in Northern Nigeria under NIPP 2

The Niger Delta Power Holding Company (NDPHC) is preparing to commence the second phase of the National Integrated Power Project (NIPP), with plans to deploy solar, mini-hydropower and off-grid solutions, particularly in Northern Nigeria.

The 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 said NIPP Phase 2 would mark a shift from the gas-fired generation projects implemented under the first phase to a more diversified electricity generation mix driven by renewable energy.

She said the initiative was being developed in line with Nigeria’s Energy Transition Plan, with NDPHC considering renewable energy interventions to address electricity supply gaps across the country.

“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.

According to her, NDPHC is particularly looking at the renewable energy potential in Northern Nigeria, including solar and mini-hydropower resources, while also considering off-grid solutions for areas that may not be adequately served by the national grid.

The NDPHC boss said the company currently contributes about 4,000 megawatts to Nigeria’s installed generation capacity of approximately 12,000MW, accounting for about 30 per cent of the country’s installed capacity.

She disclosed that NDPHC had developed 10 power plants under NIPP Phase 1, with seven currently commercially operational, two under construction and one undergoing upgrades.

However, despite its contribution to generation capacity, Adighije said NDPHC was facing significant challenges in getting available power dispatched to the national grid.

She said the company currently had more than 1,500MW of mechanically available generation capacity but was receiving an hourly dispatch of only about 500MW.

According to her, the suppressed generation has resulted in stranded capacity and cost the company more than N300 billion.

She called for regulatory intervention to review the dispatch merit order and address constraints preventing available generation capacity from being fully utilised.

Adighije also identified transmission constraints, low electricity tariffs, inadequate market settlements, gas supply challenges, unpaid debts and vandalism as some of the major challenges affecting NDPHC’s operations.

On the company’s financial position, she appealed to the House Committee on Power to intervene in outstanding debts owed NDPHC by electricity market participants.

She said the Nigerian Bulk Electricity Trading Plc (NBET) alone had accumulated liabilities of more than N400 billion to NDPHC.

She also disclosed that NDPHC had recovered about $12 million from cross-border bilateral customers in Togo and other debtors as part of efforts to recover more than $50 million in outstanding debts.

Adighije further said the company had recovered several turbines across its power plants, contributing about 470MW to the national grid.

She said NDPHC had also recovered 110 abandoned containers and 216 packages within its first 100 days under the current administration, saving the company more than N30 billion.

Other areas highlighted by the NDPHC management included digitalisation, improved procurement processes, asset restoration, completion of distribution projects and recovery of generation units.

Beyond generation, Adighije said NDPHC had completed 120 transmission projects, comprising 60 330kV substations, 31 132kV substations and 37 expansion projects.

She said the projects had resulted in installed transformer capacity of more than 10,000MVA.

The company has also implemented hundreds of distribution projects involving distribution transformers as well as 33kV and 11kV lines across the country.

Responding to the presentation, the Chairman of the House Committee on Power, Hon. Victor Nwokolo, commended NDPHC management for its efforts to improve electricity generation and strengthen the power value chain.

Nwokolo said the effectiveness of Nigeria’s electricity sector depended on the successful operation of generation, transmission and distribution, noting that challenges in one segment would affect the entire value chain.

He assured NDPHC that the committee would examine the challenges raised by the company and work with relevant stakeholders to address them.

The lawmaker said the oversight visit was aimed at understanding the challenges confronting NDPHC and supporting the company, rather than creating an adversarial relationship between the legislature and the agency.

He also commended Adighije for what he described as a proactive approach to managing NDPHC and addressing challenges affecting its power plants.

Nwokolo cited the Alaoji power plant as an example of the importance of proactive management, saying the facility could have faced a worse situation without timely intervention by the NDPHC management.