Fw: [EKITIPANUPO] EPDC-INFRASTRUCTURE: Energy - Ekiti Electricity, Oil and Gas {with Electricity Special Report on Power Projects - Compass News}

----- Forwarded by Femi Kupoluyi/NG/AFR/TCCC on 11/17/2010 08:27 PM -----

From:	Mobolaji ALUKO <alukome@gmail.com>
To:	Ekitipolicydevelopmentcommittee@yahoogroups.com, ekiti ekitigroups <ekitipanupo@yahoogroups.com>
Date:	11/13/2010 10:30 PM
Subject:	[EKITIPANUPO] EPDC-INFRASTRUCTURE: Energy - Ekiti Electricity, Oil and Gas {with Electricity Special Report on Power Projects - Compass News}

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Dear All:
 
 
Ekiti State may just be an oil-palm producing state - not a crude-oil producing state - but we are NOT far from energy (that is oil, gas and electricity) lanes in Nigeria.  Besides, except for the imaginary border separating us from Ondo State, we would have been a "crude-oil-producing" state".
 
Well, the the information below is for us all.  We have to make best use of what we have and where we are - both geographically and knowledge-wise.  Only an informed and enlightened citizenry can contribute maximally to its own development.
 
And there you have it.
 
 
 
Bolaji Aluko
 
PS:  Anybody who has additional or different information on these matters, please "speak up."
 
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A typical electrical power system/national network

 

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Nigeria's National Electricity Grid Assets & Ekiti

 

Item	KV	Nigeria		Ekiti State
		Kilometers Of line	No. of substations	Kilometers Of Line	No. of Substations
Grid	330	5000	23 (of 330/132kV)	???	1( of 330/132kV)
	132	6000	91 (of 132/33kV)	???	???
Sub-transmission	33	23,753	679 (33/11kV injection substations), 2,0543(33/0.415kV and 11/0.415kV)	???	9 (of 33/11kV)
	11	19,2260			???
Distribution	0.415				???
household	0.240				???

 

 

33/11KV INJECTION SUB-STATIONS IN EKITI STATE

 

 

S/N	LOCATION	PRESENTLY AVAILABLE		ON-GOING		TOTAL PRESENT+ ONGOING
		No. x Type	Total MVA	No. x Type	Total
1.	Ado-Ekiti	2 X 15MVA	30.0	1 X 15MVA	15	45.0
2.	Ikere-Ekiti	2 X 2.5MVA	5.0	-	0	5.0
3.	Ikole-Ekiti	2 X 2.5MVA	5.0	-	0	5.0
4.	Ise-Ekiti	1 X 2.5MVA	2.5	1 X 7.5MVA	7.5	10.0
5.	Ijero-Ekiti	1 X 2.5MVA	2.5	1 X 7.5MVA	7.5	10.0
6.	Oye-Ekiti	1 X 1.0MVA	1.0	1 X 7.5MVA	7.5	8.5
7.	Omuo-Ekiti	-	0	1 X 2.5MVA	2.5	2.5
8.	Igede-Ekiti	-	0	1 X 7.5MVA	7.5	7.5
	TOTAL		46.0		47.5	93.5

 

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QUOTE

Benin (Electricity) Distribution Company, which covers Ado-Ekiti, Afenmesan, Akure, Asaba, Akpakpava, Ugbowo and Warri, it was gathered, in spite of its average turnover of $9.6 million and investment of $18 million per year, had also recorded distribution losses, which were put at 21 per cent.

UNQUOTE

 

 

 

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NIGERIA POWER SECTOR SUMMARY INFORMATION

 

S/N	ITEM	INFORMATION	COMMENT
1	Number of PHCN Power Stations	11	7,122.6 MW (Megawatts) Sapele, Delta I-IV, Egbin, Shiroro, Jebba, Kainji, Afam I-V, Ijora, [Geregu, Omotosho, Olorunshogo (Papalanto)]   [PHCN – Power Holding Corporation of Nigeria]
2	Number of Existing IPP Power Stations	3	841.5 MW AES-Egbin, AGIP-Okpai, Omoku   [IPP – Independent Power Project]
3	Total installed generation capacity	7964.1 MW	7,964.1 MW
4	On-Going NIPP Power Stations	10	Geregu (Kogi), Omotosho (Ondo), Olorunshogo (Papalanto, Ogun), Alaoji (Imo), Ihovbor (Delta), Egbema (Imo), Calabar (Cross River), Sapele (Delta), Gbarain (Bayelsa),  Omoku (Rivers)   [NIPP – National Integrated Power Projects]
5	Current generation capability	3019.2MW
6	National per capita generation	0.0508KW	Actual: 0.025KW
7	Current estimated national demand	8,000MW
8	Number of transmission companies (Transcoes)	1	TCN – Transmission Company of Nigeria
9	Transmission line distance	4889.2KM of 330KV 6319.33KM of 132KV 62.50KM of 66KV	KM – kilometers KV – kilovolts
10	Transmission substations	(i)21# of 330/132KV (ii) 99# of 132/33/11KV	(i)                 Total capacity: 6098MVA   (ii)               Total capacity: 810.50MVA   [MVA – MegaVolt-Amperes] [1 VA times power factor – 1 Watt] [Power factor typically 0.6 – 0.8]
11	Number of Distribution companies (Discoes)	11	Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kaduna, Kano, Port Harcourt, Yola
12	Average gas demand of existing thermal stations	1,800mmscfd	SCFD – Standard cubic feet per day; mmscfd stands for million SCFD One cubic foot of natural gas produces approximately 1,000 BTUs
13	Gas supply to existing stations	500mmscfd
14	Sector Agencies	NERC, REA, PHCN, ECN	http://www.nercng.org  ,  http://www.reang.org/ http://www.energy.gov.ng/ http://phcnonline.com/, http://www.phcnikejazone.org/about_us.html See: http://power.cpcstrans.com/index.php?option=com_frontpage&Itemid=1
20	Governing law	Electric Power Sector Reform (EPSR) Act 2005	http://www.fmp.gov.ng/index.php?option=com_docman&task=doc_download&gid=23&Itemid=115

PHCN – Power Holding Corporation of Nigeria

MW – Megawatts

SCFD – Standard cubic feet per day; mmscfd stands for million SCFD

MVA – MegaVolt-Amperes

IPP – Independent Power Project

NIPP – National Integrated Power Projects

NERC – National Electric Regulatory Company http://www.nercng.org  

REA – Rural Electrification Agency of Nigeria http://www.reang.org/

ECN – Energy Commission of Nigeria http://www.energy.gov.ng/

 

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NIPP – National Integration Power Projects: Capacity Projections

& Expected Completion Dates

 

S/N	Name	State Of Location	Capacity (MW)	Expected Completion Date (by Quarter and/or Year)
1	Geregu II	Kogi	434	Y-2012/2013
2	Omotosho	Ondo	451	Y-2021/2013
3	Olorunsogo/ Papalanto	Ogun	675	225MW: Q4-2010 225MW: Q1-2011 225MW: Q4-2011
4	Alaoji	Abia	960	1125MW: Q1-2011 112.5MW: Q2-2011 225MW: Q4-2011 510MW: Y-2012/2013
5	Ihovbor/Eyaen	Edo	450	225MW: Q1-2011 225MW: Q2-2011
6	Egbema	Imo	338	Q2-2011
7	Gbarain/Ubie	Bayelsa	225	112.5MW: Q1-2011 112.5MW: Q2-2011
8	Calabar	Cross-River	563	112.5MW: Q1-2011 112.5MW: Q2-2011 338MW: Y-2012/2013
9	Sapele	Delta	450	225MW: Q4-2010 225MW: Q3-2011
10	Omoku	Rivers	225	Q2-2011
	TOTAL		4771

Source:  Niger Delta Power Holding Company Ltd. (October 2010)

 

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Nigeria's Oil, Gas and Power Lines

 

 

Nigeria's Oil and Gas Pipeline Infrastructure

 

Source:
 
Compassnews,
February – 1 – 2010

The Federal Government has failed to provide a stable electricity power for the country despite several promises of the past the last was the mandate to the Power Holding Company of Nigeria Plc (PHCN) to generate 6,000 mega watts (MW) by the end of last year which was not met.

The lack of adequate power supply is one major factor that killed industrialisation and made mass joblessness the order of the day. In this special report, as the poor power supply continues to take a toll on the economy, CHARLES OKONJI takes an in depth look at the state of several power projects, and why blackout may remain for a long time.

When Lanre Babalola, Minister of Power, made the list of ministerial nominees, many energy experts, who followed his antecedents as the head of power unit at the Bureau of Public Enterprises (BPE), applauded his choice. To them, the technocrat would fix the nation's ailing power industry in a matter of time.

When the University of Surrey, United Kingdom, trained energy economist, assumed office, he made some promises which include: the Federal Government will rethink the structure of Power Holding Company of Nigeria Plc (PHCN), Nigeria to achieve 6,000 mega watts by end of 2009, among others.

The board of PHCN, including its Executive Vice Chairman, Bello Suleiman, was the first victims of Babalola's reign. For the Power Minister, who is regarded as a world-class agent of privatisation, Suleiman was not addressing the power problems headlong. He was accused of centralising too much power at PHCN headquarters.

Babalola was said to have insisted that the nation had the potential to generate sufficient electricity to meet the demand, assuring that 6,000 mega watts would be realised by December 31, 2009.

But as the government failed to meet the target, Babalola is singing a different song. He said that the target was no more important.

According to him, "We are working very hard to improve the power supply. It is the power supply and not the target that matters. The 6000 mega watts is not realisable in one day, but a gradual process through steady power supply in the country, which call for patience."

Power generation is currently around 3,700 mega watts, a far cry of the target of 6,000MW. Sapele Power Plant, with a capacity of 451MW, it was gathered, had generated nothing since November, while Delta Power Station currently fluctuates between 50 mega watts and 100MW as against its installed capacity of 340MW.

Egbin Power Plant, sources equally disclosed, has been up and down, precisely between 300MW and 850MW. The cause, according to PHCN's Executive Director for Operations, Mr. John Ayodele, was due to shortage of gas. AES, a Lagos State Government's project, has been contributing about 200MW to the national grid as against 280MW of its installed capacity, also hinged on inadequate gas supply.

Jebba, Kainji, Shiroro and Omotosho equally recorded drop in generation. The shortfall, was attributed to inadequate gas supply for thermal plants and low water level for the hydro power plants.

The National Electricity Regulatory Commission (NERC), while explaining the negative impact of the power supply, said that Nigerians spent up to N769.4 billion annually in fueling generators. Of this amount, N540.9 billion was spent on diesel-powered generators, while N255.5 billion was spent on buying petrol for generators. The Federal Government equally appropriated N2 billion for the purchase, maintenance and fueling of the generators that service the presidential villa.

The Council for Renewable Energy in Nigeria (CREN) estimated that power outages had brought about a loss of N126 billion ($984.38 million) annually by the country, pointing out that poor transmission lines had contributed to this situation, as many transmission lines could not carry the load due to inadequate maintenance and lack of commitment of government.

Sources disclosed that with the amnesty in place and the return of peace to the Niger Delta, the power generation could improve, as gas supply is guaranteed.

Aside from the Minister of Power's insistence that the situation was primarily gas issue, an official of PHCN also linked the poor electricity supply to the backlog of neglect of the power industry. As the official explained, the power sector, prior to 1999, was in deplorable state due to poor funding and inadequate infrastructural development. For over 10 years, the sector did not witness substantial investments in infrastructure, while poor funding left existing infrastructure in a state of decay.

The lack of maintenance and replacement of damaged equipment, the official stressed, led to a wide gap between demand and supply. Generation went down from installed capacity of about 5,200MW to 1,750MW, with load demand put at 6,000MW. At the same time, only 19 out of the 79 installed generating units were in operation.

The official said in its determination to revamp the power sector, the Federal Government, between 1999 and 2007, approved a total budgetary allocation of N396 billion ($3.1 billion) for PHCN, but PHCN only received the sum of N264 billion ($2.06 billion).

Out of the amount received, the sum of N126 billion ($986 million) was for the rehabilitation of six existing thermal and hydro power stations at Afam, Delta, Egbin, Kainji, Sapele and Shiroro.

The official noted that the money was also meant for the construction of Delta Power Plant, Geregu Power Plant, Omotosho Power Plant and Papalanto Power Plant, among others. PHCN, she disclosed, funded the construction of 276MW Afam Power Station at the cost of N22 billion (euro130million) from Internally Generated Revenue (IGR).

The sum of N106 billion ($826 million) was for the reinforcement and construction of transmission lines and substations, which included, among others, the completed Abuja – Shiroro 330 KV double circuit line and substations at Katampe and Central Area, Abuja; Owerri – Ahoada – Yenagoa 132KV line and substations, Kano – Dutse – Azare 132KV and associated substations.

Also, the sum of N25 billion ($192 million) was released for the reinforcement of distribution infrastructure including construction of substations, procurement of transformers and meters, while the sum of N7 billion ($57 million) was for other operational expenditure.

The Federal Government in collaboration with the states and local governments in 2005, according to the official, embarked on the construction of new power stations under the National Integrated Power Projects (NIPP).

The power stations, she said, included 561MW Calabar Power Plant, 338MW Egbema Power Plant, 225MW Gbarain Power Plant, 451MW Ihovbor/Eyaen Power Plant, 451MW Sapele Power Plant and 230MW Omoku Power Plant.

She said: "The NIPP project also involves the construction of transmission lines, associated substations and reinforcement of distribution infrastructure. The sum of N257 billion ($2.01 billion) has so far been funded.

"It should be appreciated that power sector is capital intensive and have long gestation periods. The International bench mark price for the construction of a new 100MW power plant is $100 million (N12.8 billion).

"Presently, Chevron is constructing a 780MW power station at Agura, Lagos at a cost of $750 million (N96 billion). Also, Shell Petroleum Plc is constructing a 1,000 MW at Afam, Rivers State at a cost of $1 billion (N128 billion).

"With adequate and timely funding, it takes an average of three to four years to complete a 100 mega-watts Greenfield Power Station and about three years to complete a 100 kilometres high tension transmission line and substation.

"Much as the power sector infrastructure is still inadequate, the Federal Government has taken positive steps in finding a lasting solution to the nation's power problems through the construction of new power plants, transmission lines, substations and distribution reinforcement, which when completed will greatly improve the power supply in the country," she stressed.

Geregu Power Plant, which was conceived as engine powerhouse of Kogi and five other states, has not operated above 24.15 per cent of its installed capacity of 414MW, while Kainji Power Station, with an installed capacity of 800MW, it was gathered, had been hovering around 350MW.

Jebba Power Station, with an installed capacity 540MW, it was also learnt, had a record of low capacity generation. Ughelli Power Plant, with an installed capacity of 900 MW, had only been generating about 518MW due to what sources said was the overhauling of a number of units, while faulty generator transformers, which have been out of service, had limited energy export.

The distribution sector, a source close to PHCN disclosed, had not helped matters, as it recorded huge losses out of the meager electricity generation capacity. Abuja Distribution Company, which has an average investment profile of $20 million per year and an average turnover of $62 million, had, most often, the source said, recorded distribution losses of 35 per cent, which involved both technical and non-technical.

Benin Distribution Company, which covers Ado-Ekiti, Afenmesan, Akure, Asaba, Akpakpava, Ugbowo and Warri, it was gathered, in spite of its average turnover of $9.6 million and investment of $18 million per year, had also recorded distribution losses, which were put at 21 per cent.

The source also disclosed that Eko Distribution Company, currently operating as a semi-autonomous entity responsible for distributing electricity in the commercial and financial hub of Lagos, has an average turnover of $103.1 million with investment of $17 million per year, while recording distribution losses of 18 per cent.

According to him, Enugu Distribution Company had averagely recorded only six per cent distribution losses, while the average turnover was put at $57.8 million with an average investment of $21 million. Ibadan Distribution Company, which distributes electricity in parts of Oyo State, Ogun, Osun, and Kwara states, he said, had recorded revenue collection of 91 per cent, precisely $77.2 million, while the annual investment was put at $31.4 million. The distribution losses were put at eight per cent.

Ikeja Distribution Company, which distributes electricity to Ikeja, Shomolu, Alimosho, Ojodu, Ikorodu, Oshodi and Abule-Egba, the source stressed, had equally maintained distribution losses of 18 per cent, while recording an average turnover of $117 million and investment profile of $15 million per year to improve efficiency and keep up with the demand growth.

Jos Distribution Company, which is responsible for distribution of electricity to Jos, Bauchi, Gombe and Makurdi, he pointed out, had an average turnover of $9,596,899 with an investment of $15 million, while recording distribution losses of 22 per cent. The Kaduna Distribution Company, which covers Makera, Doka, Birnin Kebbi, Gusau, Sokoto and Zaria, he said, indicated an average distribution loss of 25 per cent, while earning a turnover of $31,263,565 with an annual investment of $12 million.

Kano Distribution Company, it was gathered, had recorded an average distribution loss of 40 per cent, while the turnover and investment were $28 million and $15 million per year. Port Harcourt Distribution Company, which distributes electricity in the districts of Calabar, Diobu, Ikom/Ogoja, Borikiri, Uyo and Yenogoa, also maintained distribution losses of 15 per cent. The turnover only averaged $32.2 million, while investment stayed at $15 million per year.

Yola Distribution Company, it was gathered, distributes electricity to the districts of Yola, Maiduguri, Taraba and Damaturu, recorded an average annual turnover of $9.6 million and investment profile of $15 million per year, while distribution losses were put at 22 per cent.

The Managing Director of Powercap Limited, Mr. Biodun Ogunleye, in a petition to President Umaru Yar'Adua, pointed out that the inability of nation's retail infrastructure to eliminate losses had created a deep-seated challenge for the sector.

Without fixing the distribution side of the business and ensuring operator with bankable and creditable profiles, he said, "we might not be assured of independent liquidity and appropriate cost recovery frame work for the sector unless it is deregulated through the implementation of the Power Reform Act."

He pointed out that the Federal Government had, in 2006, when it claimed to have achieved 5,198 mega watts, planned for 14,837MW in 2009 and 15,853MW in 2010 before the government reversed itself to 6,000MW.

To this, Ogunleye queried: "Could we have truly been at 5,000 MW as at December 2006, if yes what happened to the capacities that we had then? The projections relied on growth in Joint Venture (JV) Independent Power Plants (IPPs) and Other IPPs, which should be additional 5,000MW, and giving the fact that NERC has also awarded over 20 IPP licenses to investors who have largely not moved beyond front end designs, what could be the structural and or systemic challenges that have made Final Investment Decisions by this players impossible?

"If today we are still battling with generating 2500MW, the facts of the decline speak for itself. It is a known fact that the target of 6,000 MW promised by this government will not be realised due to the same problem that scuttled previous plans. Already key players have started lamenting over lack of gas supply to the sector as the likely hindrance, as if gas was not a problem when the promise was made," he stressed.

Powercap boss said that Ghana, a neighbouring country, had about 270 kilowatt-hours per capita, while kilowatt-hours per capita.

The average for Africa, according to him, was over 500 kilowatt-hours per capita. South Africa's average was projected at over 2,000 kilowatt-hours per capita, while the world average was put at over 2,000 kilowatt-hours per capita. With the current population, he said the country required nothing less than 100,000MW.

Ogunleye added: "The present transmission system is a test case in system collapse management and we can only but stress the need to have semi independent sub-grids possibly along regional lines, encouraging competition amongst operators and permitting private capital, from operators who could be rewarded on throughput basis in a PPP arrangement."

Records showed that United States of America, with a population of 315 million, generates 995MW; China, with 1.3 billion, generates 775,000MW; Britain, with a population of 75 million, generates 75,000MW; South Africa, with a population of 35 million, generates 45,000MW, while Nigeria, with a population of 145 million, generates only 3,500MW.

It was equally gathered that even before Senator Imoke projected 6,000 mega watts for 2009, the Federal Government had made such projection for 1979. But 30 years after, the nation has not achieved it.

Ogunleye, also in his letter to President Yar'Adua, stated: "Implementing the provisions of the ESPR Acts should be the ultimate goal and solution to this continuous wastage of government's dwindling resources on the sector without commensurate result. There is no better solution to the sector than the total implementation of the Act as government cannot single handedly provides the needed investment to the sector.

"What is surprising is that the implementation of the Act is presently suspended by the very people who were actively part of its initiation. Nobody is discussing why the Act is not being implemented, why is it that Ghana and some of our neighboring countries are getting their power right. We are repeating same failed policy over and over again.

"The only visible problem to the implementation of the power sector reform is the huge unfunded pension liability and the severance benefit requested by the staff unions. The staff unions are aware of problems that staff of enterprises and companies previously privatized by BPE went through. However, while the union may have genuine fear, nobody is interested in addressing the fear of the staff. The staff problem is now being used to continue the same failed strategy which benefits only the implementers and not the sector. Why can't we address the staff issues and move forward?

"The most important lesson from the telecoms reform is the power of competition and credible business cash flows, without which attracting funds required for sustainable power sector improvement, would be impossible. We have enjoyed the improvements that the liberalization of the telecoms have brought to the lives of our people, one wonders whose interest would be served by those who are making efforts at ensuring tariffs are not cost reflective in the power sector?

"Only total deregulation of the sector can guaranty investment into the sector. The claim that Nigerians cannot afford competitive electric tariff is not justifiable if one can scientifically cost what is being spent on generators and other alternative power sources in Nigeria. It is also instructive to know our tariff charges are far lower than Ghana yet Ghana is more competitive than Nigeria," he stressed.
 
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