Power Generation: NDPHC Reactivates 450-Megawatt Alaoji Facility

The Niger Delta Power Holding Company's Managing Director and Chief Executive Officer, Engr. Jennifer Adighije, has announced the restoration of operations at the 450 megawatts Alaoji Open Cycle Power Plant in Abia State, which was shut down in 2023 due to gas supply and metering disputes.

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Adighije made this disclosure during a meeting with Abia State Governor, Alex Otti, where she provided an update on the company's efforts to revive the power plant, which was shut down after disparities emerged between metering and trading points.

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The shutdown led gas supplier TotalEnergies to suspend supply to the facility, resulting in accumulated debts, but Adighije noted that upon assuming office in 2024, restoring the Alaoji plant became a priority for the company.

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According to Adighije, the company has completed remedial works on the defective gas line and defrayed past due obligations to Total, prompting Total to restore gas supply to the plant.

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Extensive electromechanical works have also been completed on the plant, resulting in the restoration of three generating units, GT1, GT22, and GT23, which can now dispatch approximately 375 megawatts to the national grid.

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The plant has adequate transmission infrastructure with no major evacuation constraints, making it a viable generation facility for grid-imported electricity, Adighije explained.

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Adighije commended the Abia State government for reforms in the electricity sector, particularly the Aba ring-fenced power arrangement and the establishment of the state electricity regulatory agency.

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The company is leveraging the Electricity Act and the evolving bilateral electricity market to partner with states and eligible customers to improve power supply across the country, Adighije said.

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She expressed interest in forming a strategic alliance with Abia State to secure uninterruptible electricity for the state's residents, given the state government's drive and determination.

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Responding to the announcement, Governor Otti praised the NDPHC management for restoring the Alaoji plant, describing it as crucial to economic growth and industrial development in the state.

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Otti revealed that the plant could be expanded to 800 megawatts and eventually to about 1,100 megawatts, subject to the availability of funds, and noted that power remains a critical driver of economic development.

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The governor reiterated that his administration has prioritized electricity infrastructure since assuming office in 2023, and disclosed that the state government has ring-fenced the Umuahia electricity market.

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The state government has entered into an agreement with the Enugu Electricity Distribution Company to acquire electricity distribution assets covering Umuahia and surrounding areas, Otti explained.

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The state will require approximately 100 megawatts to service the eight local government areas under the Umuahia ring-fence, and investments in renewable energy and mini-grid projects are also ongoing, according to the governor.