Nigeria’s largest power company, Egbin Power Plc, is planning to double its generation capacity to 2,640MW over the next three to four years, which is expected to cost $1.8 billion.
According to CEO Egbin Power Plc, Dallas Peavey, the company has been investigating the possibility of investing in solar power and transmission infrastructure, two areas that have hindered the growth of the country.
Egbin Power is 70% owned by a joint venture between state-run Korea Electric Power Corp (Kepco) and Nigerian conglomerate Sahara Group, with the balance held by the Nigerian government.
Out of 1,320MW of installed power generation, Egbin’s power plants have only been generating 440MW. Peavey said that the company, which has six 220MW gas-fired power plants, has only been producing 440MW since it was privatised.
“We are going through and into the process of developing phase II, to double the capacity of Egbin. In three to four years it would be completed,” Peavey said.
Peavey said that the company was looking to boost renewable energy generation over the next 18-months. According to him, talks with U.S. Exim Bank, the World Bank and African Development Bank were ongoing to fund the phase II expansion plan and that it has spent $250 million to commission engineering analysis and evacuation studies for transmission.
In spite of the privatisation of the sector in 2013, which was meant to boost foreign direct investment (FDI) and improve the overall sector, there remains a lack of investment in the gas and transmission infrastructure which is still owned by government.
“The power that we give to the grid is not getting to the distribution companies (Discos). The biggest issue is the transmission constraints and the gas, and the government is going to have to lead us out of it.”
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