Nigeria’s largest power generation company, Egbin Power Plc, has raised alarm over the Federal Government’s indebtedness to its company, which averaged N100 billion as at 2019.
The company announced its plans to generate and evacuate power at installed capacity of about 1,320 MegaWatts, MW, before end of this month.
Chief Executive Officer Sahara Group, Mr. Kola Adesina, who stated this Tuesday, noted that the Egbin Power Plc has escalated both technical and engineering works in its plants to enable it generate power at installed capacity of about 1,320Mega Watts, MW, before end of this month.
Speaking at the induction of thirty nine Sahara Group Graduate Engineering Programme, GEP, at the National Power Training Institute of Nigeria, NAPTIN, in Lagos, Adesina, said consumers might be closer to experiencing better power supply, with the company contributing to power supply.
Adesina said: “Government is still owing the industry about N100 billion. However, I commend the present administration for being sensitive to the plight of operators by making committed efforts to offset the debt through the payment assurance scheme.
”Egbin Power Plc has escalated both technical and engineering works in its plants to enable it generate power at installed capacity of about 1,320MegaWatts, MW, before end of this month.”
He said the company would ensure that the power plant increased its electricity generation capacity by 100 percent by the 2019.
According to him, this is to actualise its vision of enhancing the country’s economic growth and development.
He, however, expressed serious concerns about transmission evacuation limitation which might result in difficulties pushing out the volume of power from the plant to the grid network.
Adesina said the company has deployed all necessary tools to actualise this target, adding that at the moment, the plant was generating over 800MW, despite gas supply hiccups.
He explained that while the company was sustaining its operations, there was urgent need for government to offset debt owed generation companies as well as review electricity tariff to make the industry competitive.
He further reaffirmed plans by the management to double the plant’s capacity to about 3,000 MW from its current 1,320 MW.
“We are planning to raise the plants’ capacity by additional 1,900 MW to the existing 1320MW to reach above 3,000 MW this year.
”Also, we have started a plan now to double the capacity of the plant as well as implement a programme to make Egbin an industrial hub, where companies can come in and set up their factories, knowing that their businesses will be powered effectively and efficiently,” he said.
Recall that prior to its privatisation, Egbin Power plant was in a deplorable situation, generating about 500MW.
The plant before then, did not undergo any major overhaul as the six units were not functional, especially unit 6 which did not function for 10 years.
The company plans to invest $1.2 billion for the capacity upgrade which is expected to be completed between 2019 and 2020.
