Power Generation Crashes by 990MW, Gencos Lose N1.8tn

The available generation capacity in Nigeria’s power sector dropped again in 2022, as it crashed from the 6,336.52 megawatts recorded in 2021 to 5,346.82MW last year, latest data on electricity generation trend seen in Abuja on Monday, showed.

It was also observed that the annual capacity payment loss to power generation companies had increased to N1.8tn, as data from the document further showed a decrease in the average utilised power in 2022.

Figures obtained from power generation companies indicated that while the average quantum of electricity utilised in 2021 was 4,118.98MW, it dropped to 3,940.54MW in 2022.

The document on Power Generation Trend (2013 – 2022), showed that Nigeria’s average available generation capacity fluctuated between 4,000MW and 7,700MW since the sector was privatised in 2013.

Also, the average utilised generation hovered between 3,000MW and 4,000MW during the nine-year review period, while unutilised generation revolved around 1,000MW and 3,700MW.

Figures from the document showed that Nigeria’s average available power generation capacity in 2013, 2014, 2015 and 2016 were 4,214.32MW; 6,154.05MW; 6,616.28MW; and 7,039.96MW respectively.

In 2017, 2018, 2019 and 2020, the average available generation capacity figures were 6,871.26MW; 7,506.23MW; 7,381.67MW; and 7,792.51MW respectively.

Since 2018, the figures kept dropping, as those of 2021 and 2022 were 6,336.52MW and 5,346.82MW respectively.

For average utilised generation, the Gencos’ report stated that in 2013, 2014, 2015 and 2016, the quantum of electricity utilised was 3,183.51MW; 3,419.1MW; 3,606.05MW; and 3,212.02MW respectively.

The average utilised power in 2017, 2018, 2019 and 2020 were put at 3,599.33MW; 3,807.22MW; 3,782MW; and 4,050.07MW respectively.

For 2021 and 2022, the average quantum of utilised electricity were 4,118.98MW and 3,940.54MW respectively, according to the figures from the power generation companies.

The Gencos also stated in the document that the total capacity payment loss to power producers from 2015 to 2022 had increased to N1.8tn.

The report showed that in 2015, 2016, 2017 and 2018, the annual capacity payment loss was N214.93bn, N273.32bn, N236.47bn and N264.08bn respectively.

For 2019, 2020, 2021 and 2022, the figures for annual capacity payment loss were put at N256.97bn, N266.1bn, N159.86bn and N132.19bn respectively.