THE Niger Delta Power Holding Company Plc (NDPHC) said it is seeking regulatory approval to free and commercialise about 200 megawatts (MW) of its 2,000 MW stranded electricity by year’s end.
Its managing director, Jennifer Adighije, hinted at the organisation’s plans during her visit to the Nigerian Independent System Operator (NISO) in Abuja, according to a statement on Monday, July 21,
She said the plan would be executed by signing new power purchase agreements (PPAs) with eligible off-takers and traders.
She noted that the agreements, which are currently awaiting regulatory approval, are part of a broader strategy to unlock stranded capacity, improve liquidity, and ensure the commercial sustainability of the government-owned generation company.
“I’m sure you know that for us to activate those transactions, we will need to get the approval of the regulator, which is already ongoing.
“So before the end of the year, we should be able to commercialise about 200MW of our stranded electricity, which is awaiting approvals before the Nigerian Electricity Regulatory Commission (NERC) as we speak,” Adighije said.
The ICIR can report that stranded energy refers to the excess electricity generated by power plants that is not used or sold.
The NDPHC boss asserted that the recent improvement in plant availability has positioned the power holding company to ramp up supply and meet off-taker demands once the regulatory green light is received.
She believes the revival of key assets, including the Omotosho and Alaoji power plants, will enhance generation capacity.
“We’re also improving our mechanical availability, and we can significantly improve on the commercialisation of our stranded electricity.
“The Electricity Act (EA) has also empowered us now to go into successful bilaterals with bankable customers, off-takers and traders and I can tell you that we have already signed some PPAs with some traders and some off-takers, which are before the regulator for approval,” Adighije said.
She maintained that NISO’s support for improved dispatch levels is critical, especially given the company’s lack of a formal PPA with the Nigeria Bulk Electricity Trading (NBET) Plc.
Adighije pointed out that without stable offtake arrangements, much of the NDPHC’s available capacity would remain underutilised.
At the core of developing and maintaining power generation, transmission, and distribution infrastructure to improve Nigeria’s electricity supply is the NDPHC.
It acts as a catalyst in bridging the power infrastructure gap while playing a key role in the Nigerian Electricity Supply Industry (NESI).
A recent report by The ICIR spotlighted that Nigeria continues to struggle to deliver consistent electricity to its teeming population, despite having an installed electricity generation capacity of approximately 13,500 MW.
In recent times, the country’s national grid continues to be plagued by dilapidated infrastructure among other systemic inefficiencies.
In 2024 alone, the national grid suffered frequent collapses, averaging at least one major outage per month, disrupting lives and businesses across the nation.