The Nigerian Electricity Regulatory Commission (NERC) has approved an interim agreement to procure 450 megawatts of electricity from Zungeru Hydro Electricity Generation Company Limited. This decision, outlined in notice order NERC/2024/044 signed by Vice Chairman Musiliu Oseni, aims to prevent the shutdown of the newly completed Zungeru hydropower plant, which has a capacity to generate 650 megawatts.

The approval is crucial due to overriding public interest and is effective for 105 days starting from midnight on May 16, 2024. The Independent System Operator of the Transmission Company of Nigeria (TCN-ISO) has been authorized to manage the settlement for power wheeled from ZHEGC during this period.

To address current imbalances between generation and off-take without resorting to limiting load offtake by Distribution Companies (DisCos), NERC directs TCN-ISO to enter into an interim energy sales agreement with ZHEGC for up to 450MW of energy and capacity. This agreement is on a best-effort basis and will be effective from May 16, 2024, until August 31, 2024, initially.

In May, Minister of Power Adebayo Adelabu noted that the completion of ZHEGC, Nigeria’s second largest hydropower plant after Kainji dam, adds 625MW to the national grid, increasing the country’s electricity generation capacity from 4,200MW to 4,800MW.

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Theresa Anyanwu

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