Nigerian Firm Commences Operations at $1.3 Billion Zungeru Power Plant, Promising Positive Impact on National Grid
Mainstream Energy Solutions Limited, a Nigerian energy company, has recently initiated operations at the Zungeru hydropower plant, marking a significant milestone almost one year after securing the concession. The 700MW plant, Nigeria's largest power facility, is expected to address a substantial portion, approximately 30%, of the country's power requirements.
Mainstream Energy Solutions Limited, through its subsidiary Penstock Energy Limited, is tasked with the management of the Zungeru Power Plant, a venture made possible by a $1.3 billion loan from China. This accomplishment comes after the company successfully won the bid for the facility's management in February 2023.
Under the terms of the concession, Mainstream Energy commits to an annual payment of $70 million to the Nigerian government over 30 years for the privilege of operating the power plant. Audu Lamu, the CEO of the company, emphasized the commencement of the actual work, emphasizing the importance of managing the asset in adherence to international standards.
Mainstream Energy already manages the Kainji and Jebba hydroelectric plants, contributing a combined 1,338MW, equivalent to about 33% of Nigeria's existing power supply capacity of 4,000 megawatts.
According to Jose Villega, Chief Technical Officer of the energy company, the Zungeru Power Plant's new additions will contribute approximately 1,202MW to the national grid. The expansion involves incorporating two additional units into the existing eight units at the Kainji plant, bringing the total to 10 units.
The Zungeru Power Plant stands out as Nigeria's largest hydropower project and ranks among the most substantial power initiatives in Africa. With financial backing from the China Exim Bank, the project not only promises increased power generation but also provides flood protection and supports irrigation needs.
Expected to generate 2.64 billion kilowatt-hours of electricity annually, the Zungeru Power Plant aims to meet nearly 10% of Nigeria's total domestic energy requirements. This development aligns with ongoing efforts to enhance the nation's power infrastructure and address electricity needs.
In a related development, the Nigerian Electricity Regulatory Commission (NERC) has mandated 11 power distribution companies to deliver 715,000 prepaid electricity meters in 2024. This directive seeks to address arbitrary billing practices and improve meter provision for end-users, emphasizing the importance of achieving a more transparent and accountable electricity distribution system in the country.