The Power Generation Companies of Nigeria, GENCOs, have called on the Federal Government to wade into challenges of gas supply to thermal plants which account for 80 percent of Nigeria’s power generation.

If such is not addressed, Nigerians may be thrown into darkness as they oblige the sit at home directive.

Executive Secretary, Association of Power Generation Companies, APGC, Mrs Joy Ogaji,  made this known in a statement obtained by Reeltime24.

She, noted that there were shortage of gas supply for thermal generation companies. “Thermal power from gas and steam turbines accounts for about 80 percent of Nigeria’s power generation. Gas unavailability greatly hinders power generation in thermal Power Plants. Gas cost constitutes over 60 percent of wholesale electricity tariffs in Nigeria. 

“Hence, what goes on in the gas sector has huge implications for the NESI. Gas suppliers demand upfront payment (pre-payment) before they make gas available and the GenCos cannot afford to meet this request given the liquidity issues in the NESI. 

“From the GENCOs point of view, we are willing to invest to increase the capacity of our power plants and provide necessary investments to cater for maintenance and the repair. Generation Companies are willing to work with relevant stakeholders such as the Federal Ministry of Petroleum resources and the Nigerian National Petroleum Company (NNPC), two critical stakeholders with oversight over gas resources, to develop novel approaches in making gas available for generation companies. 

“Gas and transmission (evacuation) are critical and urgent needs outside the control of the generation companies and for this it calls for urgent Government intervention. GENCOs are patriotic corporate citizens with patriotic zeal and are willing to build the nation together with the government. 

“There is need for an apolitical enabling environment through the design and implementation of viable policies, strong and experienced leadership and coordination of the sector. This requires effective collaboration and coordination across interrelated Ministries.”

If answers to GenCos most pressing/pertinent questions such as: can we be fully dispatched? Can we get gas? Who is paying for the power? Can be sought, then, power supply issues of the nation will be a thing of the past.

The Association reiterated that it will continue to work with power sector stakeholders to gather and share up-to-date information, best practices and guidance to support them in safely maintaining operational integrity. “It is our earnest desire that the pandemic be resolved as soon as possible.

“We also commend the tireless efforts of the Federal Government through its agencies; Nigeria Centre for Disease Control (NCDC), Ministry of Health, World Health Organization(WHO), State Governments and other agencies as we all respond to COVID-19 and power through this crisis together.”