Strategic Steps to Unlock Stranded Electricity
The Niger Delta Power Holding Company Plc (NDPHC), a key player in Nigeria’s power sector, has announced plans to commercialise approximately 200 megawatts of its stranded electricity by the end of 2025. This initiative is part of a broader strategy aimed at improving liquidity and ensuring the long-term sustainability of the company.
Jennifer Adighije, the Managing Director of NDPHC, highlighted this during a recent visit to the Nigerian Independent System Operator (NISO) in Abuja. She revealed that the company has signed new Power Purchase Agreements (PPAs) with eligible off-takers and traders. These agreements are currently under regulatory review and are expected to play a crucial role in unlocking the company’s stranded capacity.
Adighije pointed out that the low uptake of electricity by distribution companies has been a major challenge for the company. In May, she expressed concerns over the lack of demand from these entities, which had significantly impacted the company’s operations. The situation was further highlighted by reports indicating that over 2,000MW of electricity generated by NDPHC remained unused, leaving many Nigerians without reliable power.
Enhancing Commercialisation and Operational Efficiency
The recent improvements in plant availability have positioned NDPHC to increase supply and meet the demands of off-takers once regulatory approvals are secured. Adighije mentioned that the revival of key assets, such as the Omotosho and Alaoji power plants, will further boost generation capacity.
She also called on NISO to support improved dispatch levels, given that NDPHC does not have a formal PPA with the Nigeria Bulk Electricity Trading Plc. Without stable offtake arrangements, much of the company’s available capacity could remain underutilised.
Adighije noted that the company is still heavily owed, only able to recover about 30 per cent of its invoices. She emphasized that once the company can unlock ongoing commercial transactions and improve cash flow, all obligations to partners and stakeholders would be met.
Strengthening Collaboration and Regulatory Engagement
The visit to NISO was also an opportunity to extend a handshake to the new management and express NDPHC’s readiness to collaborate. Adighije stressed the importance of establishing and reinforcing working relationships under the new NISO leadership.
She highlighted the pivotal role of Generation Companies (GenCos) in the evolving energy market, particularly with the implementation of the Electricity Act. As the backbone of the power sector, NDPHC aims to ensure that its contributions to Nigeria’s transmission infrastructure are acknowledged when issuing directives or enforcing compliance.
Adighije called for regulatory fairness and greater sensitivity to the procedural bottlenecks faced by public firms, especially in procurement and financial approvals. She urged NISO to address the disparities in treatment between public and private generation companies.
A Vision for the Future
The implementation of the Electricity Act has elevated NISO’s role in shaping the energy market. Adighije emphasized the need for a more nuanced understanding of the challenges faced by government-owned power firms. She believes that fostering a strong, collaborative relationship with NISO is essential for the continued development of the sector.
By focusing on commercialisation, operational efficiency, and regulatory engagement, NDPHC aims to play a significant role in transforming Nigeria’s power landscape. The company’s efforts to unlock stranded electricity and enhance liquidity are critical steps toward achieving a more sustainable and reliable energy future for the nation.
