KANJI AND JEBBA POWER PLANTS SUFFER N30BN LOSSES DUE TO GRID FAILURES. (PHOTO).

 Kanji and Jebba Power Plants Suffer N30bn Losses Due to Grid Failures

The Kanji and Jebba power plants have incurred losses totaling approximately N30.5bn from grid failures between 2022 and 2024. These external losses were caused by the frequent collapses of the national grid. The latest incident occurred last Thursday, marking the 11th grid collapse in 2024, which disrupted both business operations and daily life.

Consumers, the Transmission Company of Nigeria (TCN), and other stakeholders have expressed concern over the negative impact of these disruptions on the economy.

The Federal Government has attributed the recurring grid collapses to the destruction of critical infrastructure, such as transmission towers and transformers, as well as outdated equipment at transmission substations. It has cited factors including aging infrastructure, insufficient maintenance and investment, and possible sabotage by unarmed groups as significant contributors to the ongoing problem.

Power generation companies have also condemned the repeated grid failures, noting the severe effects on their operations, which have led to substantial financial and technical losses over the years.

A report obtained by our correspondent on Thursday revealed that the two power plants, among the highest generators in the country, have suffered a combined loss of N30.55bn, with the greatest loss occurring in the current year. According to the analysis, the losses stemmed from system collapses, instability, high-frequency fluctuations, ramp-downs, and unplanned outages.

The report further detailed that in 2022, the plants lost 149,524 megawatt-hours, amounting to N2.38bn. This figure rose by 164.7% to N6.3bn in 2023, with 229,370 megawatt-hours lost. In the first 11 months of 2024, the losses soared by 247.14%, reaching N21.87bn, with 356,759 megawatt-hours lost.

The report also highlighted the impact of these collapses on hydropower infrastructure, including damage to essential equipment, misalignment of shafts, contamination of lubrication oils, turbine damage, loss of generation capacity, disruptions to maintenance schedules, and rising operational costs due to necessary repairs and replacements.

Key factors contributing to the grid failures include instability and overloads within the grid, transmission line overloading, inadequate system protection, failure of critical equipment, aging infrastructure, poor maintenance, and the lack of timely upgrades. Other contributing factors include unforeseen environmental conditions, human error, and poor response during peak demand periods.

"When electricity demand exceeds the transmission line capacity, overloads can occur, potentially causing overheating, equipment failure, or cascading outages," the report noted.

Reacting to the issue, Joy Ogaji, CEO of the Association of Power Generation Companies (APGC), stated that grid collapse poses a severe threat to Nigeria's power sector, causing frequent disruptions, equipment damage, and major revenue losses for generation companies (GenCos). Speaking at a media event on Thursday in Abuja, Ogaji emphasized the need for increased electricity supply projections but stressed that safeguarding lives and equipment is essential to sustain economic growth and meet rising demand. She called for a concerted effort to improve efficiency across the entire power supply chain.

Ogaji explained that grid collapse significantly disrupts the power sector, damaging critical infrastructure such as generators and transformers, resulting in prolonged downtimes and costly repairs. Commercially, the impacts are equally damaging, as GenCos face reduced sales, penalties for non-delivery, and rising operational expenses. The growing financial strain makes it harder for GenCos to maintain and repair damaged equipment, which further threatens the reliability of the power supply.

"Addressing these challenges requires coordinated efforts from the government, regulatory bodies, and the power sector to enhance infrastructure, enforce maintenance protocols, and ensure the financial viability of GenCos," Ogaji added.

Industry expert Stephen Ogaji also noted that the current operational conditions of the grid are unsuitable for thermal power plants, especially when trying to comply with the grid code, which requires all generators to adhere to primary frequency response standards. He emphasized that if all market participants followed the grid code strictly, the current system parameters would have less impact on individual plants.