Alaoji’s 450MW Return After Three Years Sparks Hope For Stable Power

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LAGOS – On Thursday, the 450-megawatt Alaoji Open Cycle Power Plant in Abia State roared back to life af­ter a three-year shutdown caused by disparities between metering and trading points – a billing dis­pute.

During the three year inactivity of the plant, debts also accumulated amid unresolved dispute, while the pipeline feeding the plant had faults that needed remedial works.

The plant had earlier endured temporary suspensions, including prolonged force majeure events re­sulting from vandalism on major feed gas pipelines like the Northern Option Pipeline.

Apart from the stagnant dispute during the period, the plant also re­corded zero generation for 36 months and negatively impacted the econo­my of South-East Nigeria.

Sadly, Aba manufacturers / Dis­tribution company lost a potential 450MW of power. The Nigerian Electricity Regulatory Commission data of first quarter of 2024, also con­firmed that the plant generated zero electricity in six months during the period, highlighting the de­gree of its idleness.

Stakeholders say the return of the 450MW Aba Plant being managed by the Niger Delta Power Holding Company (NDPHC) is a boost for the country’s erratic grid system which has lately caused national embarrassment on account of frequent blackout.

They also say the restoration of the plant came at the right time Nigeria needed stable grid and increased electricity to power its industrialization drive in line with the Renewed Hope Agenda of President Bola Tinubu administration.

PATH TO REVIVAL

At a recent meeting to the governor of Abia State, Alex Otti, the Managing Director and Chief Executive Officer of the Niger Delta Power Holding Company (NDPHC), Engr. Jenni­fer Adighije, briefed her host on efforts being taken by her com­pany to resuscitate the power plant for national use.

She told the governor that the plant’s shutdown was further compounded by outstanding financial obligations, but she was not deterred by the inher­ent challenges to put the plant in good shape.

She hinted that the resto­ration of the Alaoji plant became a top priority when she occupied the driver seat of the NDPHC in 2024.

She said: “The good news is that we have completed all reme­dial works on the defective gas line. We have also fully defrayed our outstanding obligations to TotalEnergies, and gas supply to the plant has now been re­stored.”

She added that extensive elec­tromechanical works had also been carried out on the plant, resulting in the successful resto­ration of three generating units: GT1, GT22 and GT23 which are now available to dispatch about 375 megawatts of electricity to the national grid.

She noted that the plant pos­sesses adequate transmission infrastructure with no signif­icant evacuation constraints, describing it as a strategic and viable generation asset capable of supporting improved electric­ity supply nationwide.

The NDPHC boss also laud­ed the Abia State Government for its reforms in the electrici­ty sector, particularly the Aba ring-fenced power arrange­ment and the establishment of the state electricity regulatory agency.

She said the company was le­veraging the provisions of the Electricity Act and the evolving bilateral electricity market to partner with states and eligible customers in improving electric­ity access across the country.

“We would love to form a strategic alliance with Abia State, considering your admin­istration’s strong commitment to securing uninterrupted elec­tricity supply for the people of the state,” she said.

IMPACT ON ABIA ECONOMY

Governor Otti commended the management of NDPHC for restoring the Alaoji plant, saying the development was critical to economic growth and industri­alisation in Abia State.

He said: “The last time I vis­ited the Alaoji plant, it was re­grettable that such huge capaci­ty was lying idle. I am delighted to learn that the plant has now been brought back to life.”

He disclosed that the plant could eventually be expanded from its current capacity to 800 megawatts and later to about 1,100 megawatts, subject to the availability of funding.

He told his guest that elec­tricity remains one of the most critical drivers of economic development and noted that his administration had prioritised investments in power infra­structure since assuming office in 2023.

The governor further an­nounced that the state gov­ernment had ring-fenced the Umuahia electricity market and entered into an agreement with the Enugu Electricity Dis­tribution Company to acquire electricity distribution assets covering Umuahia and sur­rounding areas.

The state would require about 100 megawatts to service the eight local government ar­eas under the Umuahia ring-fence, while investments in re­newable energy and mini-grid projects were also ongoing, he said.

He implored the state Com­missioner for Power to work closely with NDPHC officials on modalities for wheeling electrici­ty from the Alaoji plant to Umua­hia and other parts of the state.

He promised the NDPHC management of the state gov­ernment’s support and urged the company to remain steadfast despite prevailing challenges in the power sector.

PARTICIPATION, COMMERCIAL NEGOTIATIONS

The Abia state government and the management of NDPHC have expressed intent to tie com­mercial partnership that would bring about reliable energy supply in the state, apart from the resuscitation of the Alaoji Power Plant.

Speaking after a tour of the facility, the Abia State Commis­sioner for Power and Public Util­ities, Engr. Monday Ikechukwu, assured Adighije of the state government’s readiness to part­ner with NDPHC.

He said the state was pre­pared to commence commercial negotiations with the company, stressing that reliable electricity supply remains a major priority of the administration.

WHAT EXPERTS SAY

Experts told SUNDAY INDE­PENDENT that the restart of the 450 MW Alaoji Power Plant in Abia State, a key National In­tegrated Power Project (NIPP) facility, represents a plus to the current drive to light up Nige­ria and make power accessible to Nigerians.

They also said the revival of the power plant is a litmus test to the effectiveness of the NIPP facility in closing electricity gap in Nigeria.

They emphasised the need for the government to resusci­tate similar NIPP facilities in the country with a view to putting them to maximal use in electric­ity value chain.

Rasheed Adeleke, an energy expert, believed that the revival of the Alaoji Power Plant was in order and would serve the intended purposes.

He told SUNDAY INDEPEN­DENT: “Rapid industrialization will return to the South-Eastern part of the country as Alaoji Power Plant returns. The return of the power plant also means the gradual death of youth res­tiveness and killings in the East, which will ultimately bring about robust economy.

“The impact will not be lim­ited to the East alone, but also spread to other parts of the coun­try because the return of the Alaoji Plant will woo more Nige­rian investors and others outside the shores of the country.”

He advised the government to consider reviving other idle or non-functional NIPP facilities in the country in order to ensure stable electricity and promote robust economy in Nigeria.

Corroborating Adeleke’s position, another expert, Wale Sunmola, told SUNDAY INDE­PENDENT that the return of the 450MW Alaoji Power Plant signals a paradigm shift in the management of power infra­structure in the country.

He cautioned the govern­ment against politicising the gesture and underutilizing the benefits it will offer the country’s power sector.

Above all, stakeholders agreed that the restoration of the 450 MW Alaoji Power Plant is a huge boost for Nigeria’s power sector which should be reasonably sustained and main­tained.