Thursday, April 2, 2020

ELECTRICITY: The Impacts of Gas Shortage in Power Generation in Nigeria and the Way Forward.

“We have been monitoring the rampaging effects of the COVID -19 pandemic in Nigeria and the world at large. Considering the cardinal role of electric power in sustaining the wellbeing of any nation and particularly in powering critical infrastructure, the commission is directing all operators in the electricity industry to ensure continuity of service during this difficult period."
“All operators shall continue to observe instructions and guidance issued by the federal government and the Nigeria Centre for Disease Control towards containing the spread of COVID-19. The Nigerian Electric Supply Industry has been directed to immediately activate its Business Continuity Plan,” NERC said in a statement by its Chairman, Prof. James Momoh."
This is Nigeria - we know what works. Unfortunately, we don't do what works. It is one thing to issue directives, it is another thing to follow up with the directives, with a view to ensuring compliance. But first ...
WHAT EXACTLY IS THE PROBLEM?
“The Gencos reiterate their commitment to improving power generation from its thermal and renewable (hydropower plants) sources across the country,” adding: “There is, however, a shortage of gas supply for thermal generation companies. Thermal power from gas and steam turbines accounts for about 80 percent of Nigeria’s power generation. Gas unavailability greatly hinders power generation in thermal power plants." In addition to that, Gas Suppliers, "demanded upfront payment (pre-payment) before they made gas available and that the Gencos could not afford to meet this request given the liquidity issues in the sector."
What could be more naked a truth than the above? Let's do a summary: To sustain the generation of power, GENCOs need an uninterrupted supply of Gas to be able to power their Thermals and meet the demands of DISCOs. Without an uninterrupted supply of Gas, GENCOs cannot power their Plants. If the Federal Government and the industry can resolve the SHORTAGE OF GAS SUPPLY, the sector would experience a dramatic improvement in power generation, distribution, and supply. Everybody knows that. But we are not doing it. As I write, we are still flaring gas in the Niger Delta. In other words, we are not in want of natural gas. We are in want of the right minds to manage the industry.
If I remember correctly, the Obasanjo Administration built three Thermal plants, and these plants are operating below installed capacity due to vandalism. There is no doubt that DISCOs are the "Bad Boy" in our electricity sector, but for a start, let the Federal Government take drastic measures to ensure that gas pipelines are secured. During the Arab Spring rebellion a few years ago, there was no failure of electricity one day in the city of Cairo, Egypt throughout the duration of the crisis. Come on, Nigeria, we can do better; ensure the needed delivery of gas to the Thermal plants, and we will take care of the GREEDY DISCO DIRECTORS who are feeding fat and billing Nigerians where they did not supply. For now, let's take care of the GAS SUPPLY.
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