Power Generation Companies (Gencos) operating in the country say monthly capacity payment losses and stranded generation of over 4,724mw are estimated at N27.14 billion in January and February this year, data from the generation companies has shown. Stranded power represents available energy capacity not generated, transmitted, and distributed in the value chain due to system failures. In January, the data showed that available generation was 6,444.05mw, while for February, it was 6,384.36mw, giving an average of 6,414.21mw. But the average generation was 4,293.68mw in January, while in February, it was 3,809.96, to total 4.051.82mw on average. The data implies that the current power cuts nationwide, which have worsened in the last few weeks, in the short term, is not a generation problem, but more of a transmission and distribution challenge.
To put it in context, the Gencos can generate 6,414.21mw on average if there are off-takers for the power generated. For instance, on March 5, peak electricity was 4,134.30mw, while off-peak was 3,593.34mw, meaning that if the Distribution Companies (Discos) requested more power, the Gencos could ramp up production. Also, the data from the Gencos showed that N13.04 billion was lost by the Gencos in January this year, while N14.10 billion was recorded as a loss in February due to capacity losses, to hit N27.14 billion in the two months under review. A recent daily load summary of power distribution companies indicated that Distribution Companies (Discos) failed to distribute about 1,769.91mw of electricity between February 1 and 14, 2024, further confirming that it’s not wholly a generation problem. Data from the Transmission Company of Nigeria (TCN) indicated that though some of the power firms received excess electricity load allocation during the period, most of them failed to utilize all the quantum of energy allocated to them by TCN.
