The Niger Delta Power Holding Company (NDPHC) is grappling with significant operational challenges due to an outstanding debt of approximately ₦600 billion owed by the Nigerian Bulk Electricity Trading Plc (NBET) and other bilateral entities.
This financial strain has led to about 2,000 megawatts (MW) of the company’s generation capacity remaining idle, primarily because of transmission constraints, gas supply issues, and limited demand from distribution companies (DisCos).
Despite these hurdles, NDPHC has made strides in enhancing power generation. Under the leadership of Managing Director Jennifer Adighije, the company has successfully revived five turbine units across its Calabar, Omotosho, Sapele, and Ihovbor power plants, adding an extra 625 MW to the national grid.
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A significant concern for NDPHC is the lack of a Power Purchase Agreement (PPA) with NBET, which has relegated the company to the lowest priority in the dispatch merit order. This situation persists despite NDPHC’s substantial available capacity, leading to the underutilization of its assets.
In response to these challenges, NDPHC is exploring alternative avenues to commercialise its stranded capacity. The company is engaging in bilateral trading arrangements and targeting eligible customers, aligning with directives from the Nigerian Electricity Regulatory Commission (NERC).
Furthermore, NDPHC has invested over ₦500 billion in transmission infrastructure since the inception of the National Integrated Power Projects (NIPP). These investments encompass transformers, substations, switch gears, and transmission lines, many of which are now operated by the Transmission Company of Nigeria (TCN).
The company is also addressing specific operational issues, such as the shutdown of the Alaoji power plant due to gas metering disputes. Efforts are underway to restore the plant’s functionality by the end of the year.
