The Kanji and Jebba power plants have reported losses of about N30.5 billion due to repeated grid failures between 2022 and 2024.
These losses were primarily caused by frequent collapses of the national grid.
The most recent disturbance, which occurred last Thursday, marked the 11th grid collapse in 2024, impacting businesses and daily life.
Consumers, the Transmission Company of Nigeria, and other stakeholders have lamented the effect of the collapse on economic activity.
The Federal Government has attributed the frequent collapses of the national grid to the destruction of electricity infrastructure, such as transmission towers and transformers, as well as outdated equipment in transmission substations.
It also cited several contributing factors, including aging facilities, inadequate maintenance, insufficient investment, and alleged sabotage by unarmed forces, as key reasons behind the ongoing issues.
Similarly, power generation companies in Nigeria have decried the adverse impact of incessant grid collapse on their activities, which, according to them, has resulted in huge commercial and technical losses over the years.
A document seen on Thursday revealed that two of the highest-generating power plants in the country had incurred a loss of N30.55 billion, with the largest portion of the loss occurring this year.
The analysis indicated that the losses were primarily due to system collapses, instability, high frequency, ramp-down, and unplanned outages.
It disclosed that the power plants lost 149,524 megawatts per hour amounting to N2.38bn in 2022. The figure increased by 164.7 per cent to N6.3bn in 2023 following a loss of 229,370 megawatts per hour.
In the first 11 months of 2024, the amount has increased by a staggering 247.14 per cent or N15.57bn to N21.87bn due to energy loss of 356,759 megawatts per hour.
In the first 11 months of 2024, the losses have surged by 247.14%, or N15.57 billion, reaching a total of N21.87 billion. This increase was driven by an energy loss of 356,759 megawatt-hours.
The document further highlighted the severe impact of grid collapses on hydropower infrastructure, including the destruction of critical equipment, misalignment of shafts, contamination of lubrication oil, and potential turbine damage. These issues have led to a loss of power generation capacity, disrupted maintenance schedules, and increased operational costs due to the need for repairs and replacements.
It added that the major causes of the collapse include grid instability and overload, transmission line overload, inadequate system protection, failure of critical equipment, ageing infrastructure, poor maintenance practices, lack of timely upgrades to the grid, and insufficient capacity planning. Additionally, factors such as unforeseen environmental conditions, human error, and inadequate response protocols during peak demand periods may have further contributed to the failure.
“When the electricity demand exceeds the capacity of the transmission lines, they can become overloaded. This may lead to overheating, equipment failure, or cascading outages,” the document noted.
In response, the Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, expressed that the grid collapse is a serious threat to Nigeria’s power sector.
She emphasized that it leads to frequent disruptions, damage to equipment, and substantial revenue losses for Generation Companies.
Ogaji, who spoke at a media training on Thursday in Abuja, stressed that the multiple grid collapse has seriously impacted Gencos.
She said, “While we certainly need a huge jump in our electricity supply projection, it is imperative to preserve lives and equipment to sustain our rapid economic growth and meet the growing demand, we therefore need to make every effort to efficiently manage all stages of value chain with intentional focus on maximizing efficiency in the entire electricity chain.
“Grid collapse poses a significant threat to Nigeria’s power sector, resulting in frequent disruptions, equipment damage, and substantial revenue losses for GenCos. Technically, grid collapse can cause catastrophic damage to generators, transformers, and other critical infrastructure, leading to prolonged downtime and costly repairs.
“Commercially, the impact is equally severe, as GenCos face reduced power sales, penalties for non-delivery (in bilateral and cross border trades), and increased operational expenses. The dwindling resources exacerbate these challenges, making it difficult for GenCos to maintain, repair, and replace damaged equipment, ultimately compromising the reliability and efficiency of the power supply.
“Addressing these challenges requires coordinated efforts from government, regulatory bodies, and the power sector to improve infrastructure, enforce maintenance protocols, and ensure financial viability for GenCos.”
