Abuja: The Niger Delta Power Holding Company (NDPHC) has unveiled plans to initiate the second phase of the National Integrated Power Project (NIPP), concentrating on renewable energy investments in Northern Nigeria. The Managing Director of NDPHC, Ms. Jennifer Adighije, confirmed this development in a statement released by Mr. Nazo Agim, Head of Corporate Communication and External Relations, during an oversight visit by the House of Representatives Committee on Power, led by Rep. Victor Nwokolo, to the company’s headquarters.
According to News Agency of Nigeria, Adighije emphasized that NIPP Phase 2 aims to diversify Nigeria’s energy generation mix by leveraging the renewable energy potential in Northern Nigeria, particularly through solar and other renewable resources. The company’s strategy includes exploring off-grid solutions, mini-hydropower projects, and solar interventions to address power supply challenges across the nation.
Adighije highlighted that the NDPHC is currently in NIPP Phase 1, which involves power generation from fossil fuels, specifically gas. She stated that NIPP Phase 2 aligns with the Energy Transition Plan, aiming to diversify the generation mix and transition to renewable energy sources. Currently, NDPHC contributes about 4,000 megawatts (MW) to Nigeria’s installed generation capacity, which is approximately 12,000 MW, representing about 30 percent.
Adighije also mentioned that the company has constructed 10 power plants under NIPP Phase 1, with seven commercially operational, two under construction, and one undergoing upgrades. Additionally, NDPHC has completed 120 transmission projects, including 60 330-kilovolt (kV) substations, 31 132-kV substations, and 37 expansion projects, with a combined installed transformer capacity exceeding 10,000 megavolt-amperes (MVA).
The NDPHC has also undertaken numerous distribution projects, such as installing distribution transformers and 33-kV and 11-kV lines nationwide. Adighije highlighted the recovery of 110 abandoned containers and 216 packages within the first 100 days of her administration, saving the company over N30 billion. Other achievements include debt recovery, digitalization, improved procurement practices, asset restoration, completion of distribution projects, and recovery of several generation units.
Adighije reported that NDPHC has recovered about 12 million dollars from cross-border bilateral customers in Togo and other debtors, from an outstanding debt exceeding 50 million dollars. The company has also recovered several turbines across its power plants, contributing approximately 470 MW to the national grid. However, she identified transmission constraints, low tariffs, inadequate market settlements, gas supply challenges, unpaid debts, and vandalism as significant challenges affecting the company’s operations.
NDPHC has more than 1,500 MW of mechanically available generation capacity but is allocated an hourly dispatch of about 500 MW, resulting in substantial suppressed and stranded capacity. This situation has cost the company over N300 billion, prompting Adighije to call for regulatory intervention to review the dispatch merit order. She also appealed to the committee to assist in recovering outstanding debts owed to NDPHC by electricity market participants, including the Nigerian Bulk Electricity Trading Plc (NBET), which has accumulated liabilities of over N400 billion.
In response, Rep. Nwokolo praised the NDPHC management for its efforts in enhancing electricity generation, emphasizing the importance of the company’s work to the entire power value chain. He noted the necessity of effective performance in generation, transmission, and distribution sectors for the success of the power sector. Nwokolo commended Adighije for her proactive management approach and assured the company of legislative support to address challenges in the power sector. He also highlighted the significance of legislative oversight visits in understanding and supporting public agencies in overcoming their challenges.