Mainstream Energy says it loses N1.8bn annually to stranded power

Mainstream Energy Solutions Limited, operators of Kainji Dam and Jebba Hydro Power plants has said it losses an estimated N900 million monthly due to stranded power occasioned by load rejection by the National Control Centre, (NCC) .

Mainstream Energy also urged the Nigerian Electricity Regulatory Commission (NERC) to fast track the implementation of the Eligible Customer policy as introduced to the Federal Ministry of Power, Works and Housing, saying such stranded power could be supplied to eligible customers and create stability in the Nigeria Electricity Supply Industry (NESI).

Saturday INDEPENDENT reports that the monthly losses of N900 million recorded by Mainstream Energy amounts to about N1.8 billion annually.

Siraj Abdullahi, the Executive Director of Mainstream Energy Solutions, while fielding questions from a select member of the press during a facility tour of Kainji Dam Hydro Power Plant at the weekend, said there are some months the company lost over a billion naira due to stranded power.

“For an average, we lose N900 million. There are worse months we lose over a billion Naira in a month, and this is a hard fact,” stated Abdullahi.

He said Mainstream Energy wants to do eligible customer, but expressed fears that NERC does not want to implement the policy as it continues to create a lot of impediments against the policy.

According to Executive Director, Mainstream had submitted all necessary documents to commence the eligible customer but up till now, NERC is yet to give any GENCO a formal approval to take advantage of the policy.

Earlier, Engr. Sunday Adeniyi, told journalists that Mainstream Energy has upgraded the two hydro power plants from 582MW to 922MW of total available capacity.

Adeniyi also disclosed that the company is further driving an ambitious expansion programme construction and installation of four additional generating units of 120MW each to be executed in two phases.

Uche Ozokoli, a potential eligible customer and the Executive Director, Projects, Helleo Health Tourism District and Residences, a Public Private Partnership (PPP) Project with the Enugu State government, also corroborated the viability of the eligible customer policy describing it as fantastic.

According to him, the policy will bridge the gap and bring electricity to distressed business units that need electricity and also help the GENCOs to stay alive.

“We have been having issues with energy which everybody know is a commonplace thing in Nigeria. We have been in the search for a solution for this for the past two years, we tinkered with providing our own energy, generating and distributing our own energy, until we heard about the Eligible Customer policy which I think is a fantastic policy that has been made by the ministry of power. This is because it is going to bring energy to businesses in distress.

“We went in search of credible partners for electricity, and we learnt about Mainstream Energy Solutions. We visited their plant and what I saw there was very amazing. Of course also, downside to it, is basically that this company generates much energy but then they cannot transfer the entire load to the national grid because the DISCOs cannot take all of them.

“This impacts their costs, it has a cost back effects on energy generated but cannot be used and paid for. So I think the eligible customer policy is going to bridge that gap to bring electricity to distressed business units that needs electricity and also help the GENCOs to stay alive” he stated.


Source: Independent



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