GENCOs – The Electricity Giant Provider Threatens to Shut Down
GENCOs – The country may be thrown into total darkness if power generation companies in the country carry out their threat to shut down plants over challenges facing the power sector in the country.
The generation companies, under the aegis of the Association of Power Generation Companies (APGC) In a statement on Monday, threatened total shut down except the Federal Government addresses the challenges they are facing.
The Executive Secretary of APGC, Dr. Joy Ogaji, in the statement, explained that the recent decline in available generation capability could be traced to the various challenges experienced by the Gencos in the electricity market.
According to Ogaji, the challenges included liquidity issues, power rejection by the electricity distribution companies and gas constraints due to the sorry state of the market.
“Few of the thermal power plants were out due to planned maintenance, which is allowed in the sector. The decline was not an act of rebellion by the Gencos neither was it deliberate but was beyond their control.
“This should serve as a wake-up call to the Federal Government to the goings-on in the industry with regards to the Gencos and if the actions are not taken by the necessary agencies, Gencos will be forced to shut down business”, Ogaji said.
Available data from the association, showed that available generation capability plunged to 5,207.57 megawatts in December from 7,238.12MW in November, while average generation rose slightly to 4,162.47MW from 4,093.76MW
“Afam Power Plc (Afam VI Gas/Steam), GT12, 13 and ST10 power plants were shut down for a period of about 16 days due to planned maintenance that was carried out by the gas suppliers on their facilities. Although Afam Power Plc was duly notified about the maintenance, it resulted in a reduction of Afam’s available generation capability from about 490MW to zero.”
She further disclosed that during the period, most power plants built under the National Integrated Power Project, including Alaoji, Sapele, Olorunsogo, and Omotosho, suffered from gas constraints.
“Some of the companies’ generation capability dropped to zero due to the outage of their power plants which was as a result of gas constraints”, Ogaji said.
According to her, gas supply to Alaoji NIPP was cut off by the gas suppliers due to the firm’s inability to pay for gas while Jebba Power Station’s generation capability reduced by about 110MW to 360MW due to low load demand.
She further stated that the reduction in demand by Discos also affected Egbin and Omoku power plants.