Good News For Electricity Consumers as Nigerian Firm Begins Work in $1.3bn Power Plant
- A Nigerian energy company, Mainstream Energy Solutions Limited, has started operations at the Zungeru Power Plant
- The development comes almost one year after the company won the bid to manage the facility
- The 700MW plant is Nigeria's biggest power plant and will reportedly supply 30% of Nigeria's power needs
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Mainstream Energy Solution Limited has begun operations at the Zungeru hydropower plant almost one year after winning the concession.
The company's subsidiary, Penstock Energy Limited, is now managing the newly built 700MW plant in Zungeru, which was made possible by a $1.3 billion loan from China.
Source: UGC
Zungeru plant: FG to earn $70m annually
In February of 2023, the Bureau of Public Enterprises (BPE) guaranteed the concession to Mainstream Energy.
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According to reports, under the concession, Mainstream Energy must pay the Nigerian government $70 million annually for 30 years in exchange for operating the plant.
The company's CEO, Audu Lamu, said the real work begins in ensuring that the asset is managed according to international standards.
The Kainji and Jebba hydroelectric plants, managed by Mainstream Energy, cumulatively produce 1,338MW, contributing about 33% to Nigeria's current power supply capacity of 4,000 megawatts.
Zungeru power plant is Nigeria's biggest
Per a statement by the chief technical officer of the energy company, Jose Villega, the latest addition would contribute about 1,202MW to the national grid.
He stated that the two additional units would be incorporated into the existing eight units at Kainji, raising the total number of units at the plant to 10.
The power plant is Nigeria's largest hydropower project and ranks among the biggest power initiatives in Africa, securing a loan facility from the China Exim Bank.
It is expected to provide power generation, flood protection, and water for irrigation.
The Zungery plant is estimated to generate 2.64 billion kilowatts hours of electricity yearly, meeting nearly 10% of Nigeria's total domestic energy needs.
Ikeja Electric, others ordered to supply meters
Legit.ng earlier reported that the Nigerian Electricity Regulatory Commission (NERC) mandated the 11 power distribution companies in the country deliver 715,000 prepaid electricity meters in 2024.
This was in response to the continued arbitrary billing of eight million users amidst the inability of utility companies to provide meters to end-users.
Nigeria's eleven distribution companies are Eko Electricity Distribution Plc (EKEDC), Enugu Electricity Distribution Plc (EEDC), Ibadan Electricity Distribution Plc (IBEDC), Ikeja Electricity Distribution Company (IKEDC), Jos Electricity Distribution Plc (JEDC), Kaduna Electricity Distribution Plc (KAEDCO).
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Source: Legit.ng
