TCN Magazine September 2019 Edition

Editorial

This edition of the Transmission News continues to showcase giant strides by TCN in actualizing its four years plan, c h r o n i c l e d i n i t s Tr a n s m i s s i o n R e h a b i l i t a t i o n a n d E x p a n s i o n Programme (TREP) collaborations and efforts to ensure that the grid expansion drive stays on course, as the company continues to undergo very significant positive transformation currently impacting the power sector

Some of TCN's Donor Funded projects amounting to $1,661bn USD, are at various stages of the procurement/implementation. By this, TCN invariably, is being capitalized and in the same vein there is need for recapitalization of the Discos to enable a robust power sector so that the developments and gains in Generation and Transmission sub sector can be delivered to final consumers. Recapitalization is imperative if the power sector must move forward.

As the issue of splitting TCN into two separate companies – the Transmission Service Provider (TSP) and Independent System Operator (ISO) – continues to feature in the media, it is pertinent to state that although their independence would expectedly improve operations in the power sector, there are however conditions precedent to their break up. The conditions are to ensure that they operate effectively as two separate entities and at the same time, add value to the power sector Some requirements include

EDITORIAL TEAM

procurement of functional, efficient SCADA/EMS among others. All these are yet to be in place, however deployment of functional SCADA/EMS remains a top priority for TCN.

In line with TREP, Management has continued to build human capacity with a series of trainings that would empower them to work more efficiently in the evolving TCN.

On the West African scene, is working assiduously to ensure that the interconnection of West African Power Pool member states is on course and that the nation also benefits from the projects to be executed by the pool.

There have been challenges no doubt, but TCN, under the present management is determined to forge ahead as it doggedly tackles obstacles and challenges to ensure timelines are met as planned.

With the Assumption of duty of the new Ministers of Power and the Committees on Power in the National Assembly, the supportive working relationship within the short period, gives the pointer that TCN would continue to record milestone achievement in its grid expansion drive, moving forward.

Ndidi Mbah Editor-in-Chief

Chief:

VICE PRESIDENT OSINBAJO COMMISSIONS NEW ABEOKUTA SUBSTATION

By Stanford Nneji

Thas assured Nigerians of its commitment to the provision of adequate and stable electricity with the execution of various power projects aimed at boosting electricity supply nationwide.

he Federal Government

Government is making concerted efforts to resolve the power supply situation in the country. He promised substantial change of strategy in order to meet the power need of Nigerians.

power supply via three 33kV feeders to Otta and its environs, and that the project would impact positively on power supply to Abeokuta, Otta axis and Papalanto.

The Vice President, Professor Osinbajo, made this assertion in A b e o k u t a d u r i n g t h e commissioning of 2X60MVA, 1 3 2 / 3 3 k V t r a n s m i s s i o n substation. He assured Nigerians that the Federal Government was committed to ensuring effective and cost reflective power supply in the country. This commissioning, he said, is an important part of government's efforts to improve supply and quality of power to homes and businesses in Nigeria. Prof Osinbajo noted that

Speaking at the occasion, the Managing Director and Chief Executive Officer of Niger Delta

P o w e r H o l d i n g C o m p a n y (NDPHC), Mr Chiedu Ugbo, disclosed that NDPHC has completed about 100 transmission and distribution projects across the country. He said that the new 2X60MVA, 132/33kV Substation in Abeokuta would provide reliable power off take via six 33kV distribution feeders to the state capital, Abeokuta and environs.

Explaining further, Ugbo said that the new 60MVA transformer at Otta would also provide additional

Mr. Ugbo also announced that NDPHC had equally completed the installation of 2X60MVA, 132/33kV Substation in Awka, Anambra State and 2X60MVA, 132/33kV Substation in Adiabo, Cross River State which would be inaugurated in the next few months. Other projects awaiting commissioning, he disclosed, are distribution injection substations in Misau and Darazu in Bauchi State, Kumo in Gombe State and Azare in Bauchi State, noting that the projects are in fulfillment of President Buhari's commitment to improved access to electricity to Nigerians.

Vice President, Prof.Yemi Osinbajo (Middle) cutting a tape to commission a new 2x60MVATS inAbeokuta

NEW MINISTERS OF POWER ASSUME DUTY, SOLICIT COOPERATION FROM STAKEHOLDERS

…as TCN highlights milestones

By Eric Ephraim Ene

The new Minister of Power, Engr. Sale Mamman has solicited the cooperation and commitment of all stakeholders in the Power Sector to surmount the enormous challenges facing the electricity industry in the country.

Engr. Mamman made this appeal at an inaugural meeting he held with the new Minister of State, Power, Mr Goddy Jedy Agba, the Permanent Secretary, Mr Louis Edozien, Directors and Heads of Agencies of the Federal Ministry of Power at the Power House in Abuja.

According to him, power is central and indispensable for the delivery of all government policies as they relate to the social economic and industrial development of any country.

Engr. Mamman stated his intention to maintain an open door policy to avail every staff, no matter their status, the opportunity to contribute their quota to the new course of action. His immediate task, he

noted, “is to acquaint myself with the task ahead, therefore I will welcome every information or advice that will enhance our efficiency. Every advice must however be motivated by a sense of truth, honesty and patriotism not meant to condemn or blackmail anyone”.

He also assured of his determination to apply himself totally to the assignment to justify the confidence of President Muhammadu Buhari and by extension all Nigerians that have entrusted him with the responsibility of the realisation of stable power supply in the country.

Speaking earlier, the Permanent Secretary, Mr Louis Edozien, intimated the ministers with activities of the ministry as he presented to them, copies of relevant policy documents which include the Electric Power Sector Reform Act (EPSRA) 2005.

He expressed delight at the appointment of the ministers, and pledged the readiness of the

(L-R), Minister of Power, Engr. Sale Mamman and Minister of State, Power, Mr Goddy Agba

(L-R), Minister of Power, Engr. Sale Mamman, Minister of State, Power, Mr Goddy Agba, NERC Chairman, Prof James Momoh and MD/CEO TCN, Mr. Usman Gur Mohammed,

management and staff of the Ministry to support and cooperate with them to make their tenure a success.

On their part, the directors in the Ministry and heads of agencies formally briefed the ministers on the activities in their agencies.

Briefing the ministers, the Managing Director/CEO of the Transmission Company of Nigeria (TCN), Mr Usman Gur Mohammed, who is also the Chairman, Executive Board of the West African Power Pool (WAPP), stated that TCN has recorded some milestones in implementing the Transmission Rehabilitation and Expansion Programme (TREP) to transform the power transmission network after attracting huge multilateral funding.

He summarised the four milestones to upgrade and expand transmission lines and substations nationwide to fully include grid system stability, the installation of Supervisory Control and Data

Acquisition (SCADA) system, Procurement of Spinning Reserve and critical investments in the Power Sector.

He also mentioned the strict enforcement of the Market Rules especially on the Distribution Companies (DisCo) to instil discipline in the electricity market.

Mr Mohammed also highlighted what Nigeria would benefit from the West African Power Pool (WAPP), Transmission and Generation Master Plan as approved by the Committee of Heads of States and Government of Economic Community of West African States (ECOWAS) under the chairmanship of Nigeria President, Muhammadu Buhari on December 22, 2018.

The meeting was attended by Directors, Heads of Agencies under the Federal Ministry of Power and other stakeholders in the Power Sector.

Agroup photograph of participants at the meeting

SENATE DECLARES SUPPORT FOR RE-CAPITALISATION OF DISCOS

By Kazah BiliAkau

he 9th Senate, under the leadership of the

Tdistinguished Senate President, Ahmed Ibrahim Lawan, has said that it would want to see a power sector road map that would be all inclusive of Generation, Transmission and Distribution, with a holistic picture of how power supply challenges would be resolved once and for all.

The senate also declared its support for the proposal to recapitalise Distribution Companies (DISCOs), and opined that the 40 percent holding of the Federal Government would be more beneficial to the nation if it is sold to foreign investors with technical know-how.

The Senate President who made these known when he received the TCN Management team in his office recently at the National Assembly Complex in Abuja, also opined that it is not in the interest of government to keep disbursing bailout funds to Discos without commensurate improvement in power supply. According to him, experts in the field should be given opportunity to invest in the sector. He went on to assure that the Senate would continue to support TCN's Transmission Rehabilitation and Expansion Programme (TREP), with the objective of rehabilitating, stabilizing and providing necessary flexibility in the transmission grid.

The Senate President however expressed displeasure with the report on Supervisory Control and Data Acquisition (SCADA) contracts awarded three times in the past without success, and called for a more stringent process of awarding contracts that would ensure that only competent firms are engaged or qualified to execute the project.

On his own part, the Deputy Senate President, Ovie OmoAgege, who was impressed with the presentation of TCN team led by the MD/CEO TCN, Mr Usman Gur Mohammed, commended the company's efforts and expressed confidence in the capacity of the TCN team to solve the power quagmire in the country.

The senate also declared its support for the proposal to recapitalise Distribution Companies (DISCOs), and opined that the 40 percent holding of the Federal Government would be more beneficial to the nation...

For the Senate Majority Leader, Yahaya Abubakar Abdullahi, reducing government bureaucracy in the power sector operations was key. He cited the difficulty in securing the supply of gas to thermal power companies as a major setback to power generation in the country.

Sen. Abdullahi, who also agreed with the position of the Senate President on the sale of 40 percent holding of the government in the Discos to experts, suggested that the Senate could re-open the power privatisation exercise carried out in 2013 and involve big foreign investors to allow for proper restructuring of the sector.

The Managing Director of TCN, Mr. Usman Gur Mohammed, who led his team to the National Assembly, earlier presented a report to the leadership of the Senate on TCN's achievement in the past two years and half.

These, according to him, include Stabilizing system frequency, executing projects in the Transmission Rehabilitation and Expansion Programme (TREP), securing USD1.661b from Multi-lateral financing agencies for execution of specific transmission projects nationwide, the evacuation of 775 containers containing power equipment from the ports as well as initiating the procurement of a functional SCADA and Spinning Reserve, among others.

(Standing), MD/CEO TCN, Mr. Usman Gur Mohammed, during his presentation

POWER SUPPLY RESTORED TO TCN'S OTUKPO SUBSTATION AFTER ATTACKS BY YOUTH GROUPS

By Mary Philip Udom

ulk power supply has been

Brestored to the Otukpo 132/33kV Transmission Substation of the Transmission Company of Nigeria (TCN), following an attack on the station by youth groups from ASA 2 Community in Otukpo Local Government Area of Benue State, who were protesting the poor power supply in the areas served by the Jos Electricity Distribution Company (JEDC).

The Assistant General Manager (Transmission), Apir Sub Region, Engr. Emmanuel Akpa, who made this known in a report said the violent protest, which took place in July 2019 in Otukpo, led to the shutdown of the substation for four days by the Management of TCN to guard against further vandalism by the rampaging youths who decided to ventilate their anger by pulling down the sign post, throwing stones, and threatening to burn down the substation, and even attacked the operators on duty. According to him, the protest was due to

continued power outage in the community for two days as against stable power supply situation in their neighboring community ASA 1, and that the incident had been reported to the Police in Otukpo and Management of TCN.

Engr Akpa further explained that in an effort to forestall future occurrence, TCN Management gave conditions for restoring power to the station. These include; arrest of the ring leaders of the violent protest, replacement/repair of all damaged TCN property, and extraction of written commitment from the leaders of the community pledging that the recalcitrant youths would not attack TCN's sub regional office again.

During the meeting with all stakeholders including Jos Disco, the Police, traditional rulers and youth leaders, the AGM informed representatives of the community that whatever grievances they had about power supply should be

channeled to Otukpo Business Unit of Jos Disco and not TCN as both do not share responsibilities.

The Jos Disco on their part complained of non-payment of electricity bills by ASA 2 community and equally gave them conditions including the installation of meters at transformer points to enhance accountability of power supply to the area.

A group photograph of participants at the meeting

HOUSE OF REPRESENTATIVES TO WORK CLOSELY WITH TCN ON GRIDEXPANSION

By Grace Sambe-Jauro

The Speaker of the House of Representatives, Hon. Femi Gbajabiamila, has t a s k e d t h e T r a n s m i s s i o n Company of Nigeria (TCN) to work closely with relevant committees in the National Assembly, to ensure that TCN achieves it Transmission Rehabilitation and Expansion Program (TREP).

The Speaker made this known w h e n h e r e c e i v e d t h e Management team of TCN, led by the Managing Director/CEO, Mr. Usman Gur Mohammed on Wednesday 18th September 2019, at the National Assembly C o m p l e x i n A b u j a . H o n . Gbajabiamila who commended the current Management of TCN, assured them that the 9th Assembly would do everything within its power to ensure TCN delivers on its mandate to Nigerians.

According to him, it is the responsibility of the law makers to make life easier for Nigerians,

and assured that the 9th National Assembly will ensure that Nigerians get adequate supply for the electricity they pay for. He frowned at the practice of estimated billing by electricity distribution companies (Discos), and stated that the House would not tolerate a situation where Discos take advantage to present outrageous bills to Nigerians.

The Honourable Speaker further added that the House has resolved to revisit the issue and enact a law that would end estimated billing of electricity.

I n h i s presentation the MD/CEO, T C N , M r . Mohammed revealed that in the last t w o y e a r s T C N h a s commissione d s e v e r a l transmission substations and installed

over 56 power transformers across the country. He added that T C N h a s s e c u r e d U S D 1.661billion from Multi-lateral financing agencies which will be used in grid expansion across the country.

Hon. Alhassan Ado Doguwa –Majority Leader, Hon. Nkeiruka Onyiejecha -Deputy Chief Whip, and the Chairman House Committee on Power, Hon. Dau Aliyu Magaji and his Deputy Hon. Francis Waive, were some of the honourable members in attendance at the meeting.

Speaker of the House of Representatives, Hon. Femi Gbajabiamila

Group photograph of participants at the meeting

Minister of Power Assures of Improved Power Supply Nationwide

By Maimuna Isah-Ladan andAbubakar BodingaYaro

The Honorable Minister of Power, Engr. Sale Mamman has assured Nigerians of improved power supply before the end of President Buhari's Administration in 2023.

Engr. Mamman gave the assurance while inspecting the 213MW Thermal Kudenda Power Plant, Kudenda-Mando

Transmission line and Substations The minister was accompanied for the inspection by the Honorable Minister of State, Mr. Goddy Jedy Agba and Managing Director of TCN, Mr. Usman Gur Mohammed on Friday, 13 September 2019 inth Kaduna.

According to the Minister, the completion of all major power projects in the country would lead to stable and quality electricity supply to the people for development.

He also expressed satisfaction with the level and quality of works so far being carried out by the contractors, and warned against delay in completing the projects.

The contract for the Kudenda power plant was awarded in November 2009 to General Electric and Rockson Engineering for a dual thermal plant using Low Pour Fuel Oil (LPFO) and natural gas. However, work on the power plant has been epileptic due to several factors, even as the deadline for completion has been shifted several times since work on the project commenced.

On his part, the Managing Director/CEO TCN, Mr. Usman Gur Mohammed, while conducting the Minister around the transmission station gave the assurance that the transmission lines to the power plant would be completed before the end of the year.

Mr. Mohammed also stated that work on transmission tower foundations have reached 90percent and very soon the lines will be stringed to enable evacuation of power from the plant. He said it was in the interest of TCN that the power plant was completed so as to improve system stability in the grid and reaffirmed TCN's commitment to pursue and implement the incremental power policy of the Federal Government adding that the company was currently executing several projects nationwide.

The Minister of Power, Engr. Sale Mamman along side the Minister of State, Power Mr Goddy JedyAgba during the Inspection

synchronisation project was part of WAPP's mandate by the Authority of the Heads of States and Governments of the Economic Community of West African States (ECOWAS), to establish a mechanism and institute frame work for integrating the national power systems of member states into one regional electricity market.

According to him, the project, in terms of scope, was the most complex to be executed by WAPP, even as he e x p r e s s e d c o n f i d e n c e t h a t representatives from various utilities would work to support its successful execution.

Mr. Mohammed appealed to member utilities to allow the consultant for the project, General Electric (GE) International, access to their power plants to test the governors, tune their power plant and change their setting where necessary, with the

WAPP TO SYNCHRONIZE POWER SYSTEMS IN 14 ECOWAS COUNTRIES

By Eric Ephraim Ene

he West African Power

TPool (WAPP), has said t h a t i t i s w o r k i n g assiduously to synchronize the interconnected Power Systems of 14 countries of the West African member states, which is currently o p e r a t i n g t h r e e s e p a r a t e networks, into a single reliable network.

The Managing Director/CEO of TCN and the Chairman, Executive

Board of Directors of WAPP, Mr. Usman Gur Mohammed made this known when he declared open a 3day meeting on synchronisation of WAPP Networks with the theme;

“Tuning of Power System Stabilizers (PSS), Field Testing of Governors, Setting of Governors and Synchronization of WAPP Network Contract”, on Tuesday, 3rd September 2019, in Abuja.

Mr. Mohammed noted that the

ultimate goal of achieving a successful synchronization.

He noted that the task before the GE in the test process is that they would require the assistance of Original Equipment Manufacturers (OEM), to enable them effectively implement the synchronization project.

Mr. Mohammed therefore called on all participants at the meeting to proffer advice and suggestions, and actively

MD/CEO TCN, Mr. Usman Gur Mohammed, addressing participants during the meeting

support as well as participate in the decision process with the view to contributing meaningfully to the execution of the project.

Earlier in his welcome address, the Director of Information and Coordination Centre, WAPP, Engr. Nazif Abdulkadir, said that the project kick off meeting between W A P P , G e n e r a l E l e c t r i c International and stakeholders was to officially start the implementation of the project, which is related to tuning of governor, testing, change of s e t t i n g s a n d p e r f o r m i n g synchronization test.

He also explained that despite the fact that the region's power systems are interconnected, the WAPP has been operating under three separate synchronous blocks.

Mr. Abdulkadir further explained that the failed attempts to synchronize the Nigeria power system with Benin, Togo, Ghana, Cote d'ivoire and Burkina Faso in 2007, and that of Cote d'ivoire, Mali and Senegal in 2012, prompted the World Bank to provide the sum of 21.5 million dollars to WAPP for the project. This

Provision was under the WAPP Technical Assistance and Network Integration Project meant to support efforts to synchronize the WAPP interconnected Power System.

A c c o r d i n g t o h i m , t h e synchronization project was based on the study conducted by Consortium Lahmeyer (now Tracetabel) in 2014, which recommended the installation of Static Var Compensator (SVC) at Matam Substation, Phasor Measurement Unit (PMU) at 22 interconnection and Special Protection Scheme (SPS) and inter trip relay in 5 substations, tuning

governor, testing of power plant and change of setting.

Mr. Abdulkadir expressed the hope that once all the projects are c o m p l e t e d , t h e W A P P interconnected power system would be successfully synchronised to allow for seamless power exchange between all member countries.

The meeting featured presentation of papers on the action plan for the projects. Participants were drawn from power utilities in Nigeria, Togo, Benin, Burkina Faso, Cote d'ivoire, Senegal, Mali, Niger, General Electric International among others.

Cross section of participants at the meeting

A group photograph of participants at the meeting

NIGERIAN MAP SHOWING FIVE EXISTING AND

ONE ON-GOING TRANSMISSION LINE LOOPS

$1.661BILLION FOR TCN PROJECTS IN START-UP STAGES, INVESTMENT STILL ON-GOING

he Managing Director of the

TTransmission Company of Nigeria (TCN), Mr U G Mohammed has said that only a fraction of the USD 1.661billion raised from multilateral financing agencies for investment in TCN has so far been invested in some of its projects. He stated that accessing the fund usually depends on the stage of project implementation, and therefore it is impossible for TCN to invest all the fund at the same time without adhering to due process as required by law and contract agreements.

He explained that his administration has changed the way projects are being handled in TCN and that it was no longer business as usual, where funds for project implementation are drawn down arbitrarily, without ensuring that they were judiciously applied to projects they were meant for.

The MD made this known to the press at the site of the ongoing 2x60MVA Gagarawa Transmission Substation, Jigawa State, during a project inspection tour of transmission substations in Kano and Jigawa States recently. According to him, such fundamental processes preceding draw down of the funds, include scoping, f e a s i b i l i t y s t u d i e s , l a n d acquisition/Right of Way, procurement

stages like pre qualification, tendering, contract award and kick off meetings among others. These take time procedurally and cannot take place at the same time. The TCN MD said that even if TCN had made full payment on any project, which it has not, it would take between three to five years for the transmission projects to be completed.

The Reinforcement of High Voltage Transmission around Abuja - Abuja Feeding Scheme - comprises 6 lots, with a project cost of $170Million. The contract, he said, became effective as at April 2019, with the official ground breaking ceremony to signify the kickoff of the project held in Dawaki, thAbuja on the 11 of April, 2019. The project, which should take about 3years to complete, would be paid in tranches in line with the contract agreements The Abuja project is aimed at adding two (2) number 330kV substations, three (3) number 132kV substations and an additional 143KM 330kV transmission line from Lafia Substation to the proposed New Apo 330kV substation, bringing to three the sources of power supply into Abuja Metropolis.

Under lots 1&2, the project would put in place 81km of 132kV DC HV Transmission Lines from New Apo, to

Old Apo and from proposed Kuje 1 3 2 / 3 3 k V S u b s t a t i o n t o proposed West Main (Lugbe) 330/132/33kV Substation.

Advance payment has been made, sites hand- over (or official ground breaking ceremony) has been done, t h e s u b c o n t r a c t o r f o r geotechnical works has also been approved while the review and approval of p r e l i m i n a r y d e s i g n drawings/documents is in progress.

Lots 3&4 comprise 2x150MVA, 330/132/33kV line bay at New Apo (Pigba), and 2x150MVA, 330/132/33kV hybrid Substation with 2x330kV line bays including 3x60MVA, 132/33kV substation, 4x132kV line bay GIS & 33kV metal clad at West Main (Lugbe) substation. Advance Payment has been made for Lots 3&4 projects

and sites handed over to the contractor while the review and approval of preliminary design d r a w i n g s / d o c u m e n t s a r e ongoing.

Lots 5&6 under the Abuja Feeding Scheme include a new 3x60MVA, 132/33kV Kuje Substation with 4x132kV Line Bays; 2x60MVA, 132/33kV Substation with 2x132kV line bays at Wumba/Lokogoma including laying of 5KM length of underground XLPE Cable from New Apo to Wumba/Lokogoma as well as a new 2x60MVA, 132/33kV GIS Substation at Dawaki on existing 132kV double circuit with a Turn in & out, along the Katampe Suleja Transmission Line.

For Lots 5&6, the advance payment has equally been made and sites handed over to contractors, the subcontractor of underground cable route from Wumba to New Apo Substation has also been approved even as

the review and approval of p r e l i m i n a r y d e s i g n drawings/documents are already in progress.

T h e N i g e r i a E l e c t r i c i t y Transmission Project (NETAP) seeks to redress certain deficiencies and operational constraints of the Nigerian Power Transmission System, to allow for efficient dispatch and transmission of power in the National Grid through additional transformer capacity. In particular, it will complement efforts underway for both emergency and long term

measures now being taken to increase generation. The project is financed by World Bank at the cost of USD 486Million.

The project is in three (3) packages; two (2) have passed prequalification stage, while the third is at pre-qualification stage.

Pre qualification of the Northern C o r r i d o r P r o j e c t is almost completed. The project is funded by the French Development Agency (AFD) and will cover the closing of loop between Sokoto to Kaura Namoda and Katsina Environmental Impact Assessment (EIA) for this project as well as verification for compensation for the right of way are on-going. The project loan is USD 300Million.

The Lagos/Ogun transmission project worth USD 238Million is financed by JICA. The project design, EIA studies, technical studies and resettlement action plan and compensation have been concluded, compensation request has been forwarded to BPP for due diligence and is expected to be concluded by the third quarter of the year.

The MD further noted that the Lagos/Ogun transmission project is significant because it targets the most industrialised parts of the country.

TCN is determined to continue to pursue its grid expansion drive and would do all it could to ensure quality project delivery in a timely manner.

(Right), MD/CEO TCN, Mr. Usman Gur Mohammed, flanked by Head TSP, Engr. Victor Adewumi (Left) and Former GM(T) Kaduna Region, Engr. Alim during the inspection tour

MD/CEO,TCN, Mr. U.G. Mohammed addressing pressmen after inspection of GagarawaTS, Jigawa State

AfDB MEET WITH TCN ON FINAL APPRAISAL OF NTEP1 TO IMPROVE BULK ELECTRICITY SUPPLY TO THE NORTHEAST

he African Development

TBank (AfDB) has met with the Transmission Company of Nigeria (TCN), for the final a p p r a i s a l o f t h e N i g e r i a n Transmission Expansion Program ( N T E P 1 ) , u n d e r T C N ' s Transmission Rehabilitation and Expansion Program (TREP), towards improving access, quality and reliable bulk electricity supply to the northeast region of Nigeria

The team, led by Mr. Phillipe Ossouca Jnr, met with the Management of TCN on Monday 1st July 2019 at the TCN Corporate Headquarters, Abuja, to assess TCN's readiness, as well as project documentation for NTEP1 project.

According to Mr. Ossouca, the project appraisal report would be presented to the Board of AfDB by the end of July 2019. The project,

which is estimated to cost $200M, is intended to boost electricity supply to the northeast which would positively impact economic activities in the region. He assured TCN of AfDB's support in facilitating efficient and quality electricity supply within the country.

In his response, the MD/CEO TCN, Mr Usman Gur Mohammed, appreciated the team for the visit, assuring them that staff assigned to supervise the NTEP1 project will be on ground to work with them and provide necessary documents and answers they may require.

He disclosed that TCN would soon embark on NTEP2 projects which would include the construction of eleven (11) 132/33kV substations and the provision of line bay extension to six (6) existing 132/33kV substations in the

northeast region.

Dr. S.T. Garba, Assistant Director International Affairs, Federal Ministry of Finance, reiterated the ministry's commitment towards the commencement of the project, and u r g e d T C N t o h a s t e n t h e Environmental Impact Assessment (EIA), which was stalling progress of the project.

The Project Manager, TCN Project Implementation Unit, (AfDB PIU) Engr. A. M. Abdulazeez noted that 'Invitation for Prequalification' of contractors to supply materials for the project would be published later within the Month of July 2019, r e v e a l i n g t h a t t h e f i r s t prequalification advert is for Engineering design, Procurement, Manufacture, Supply, Construction & C o m m i s s i o n i n g o f t h e 330/132/33kV Substations.

Cross section of participants at the meeting

ANAMBRA STATE GOVERNMENT, TCNSTRENGTHEN COLLABORATIONON POWERPROJECTS

By Osuagwu Uloma

h e A n a m b r a S t a t e

TGovernment has signed a M e m o r a n d u m o f Understanding (MoU) with the Transmission Company of Nigeria (TCN) to facilitate the completion of on-going power transmission projects that would increase bulk power supply to the state.

The State Governor, Mr. Willie Obiano, who signed the MoU on behalf of the state government when he paid a courtesy visit to TCN management on Wednesday, 21st August 2019, at the TCN headquarters, Abuja, commended TCN for the improved power supply in Nnewi Substation, an industrial town in Anambra State. This, he said, has helped boost economic activities in the area. He noted that the state has invested in Awada Substation to enable over 32 communities benefit from the bulk power supply.

He decried the poor power situation in Anambra North Senatorial District, and stated that the future of the state lies in the area due to its huge deposit of gas, which has attracted investors. This potential however is yet to be tapped because of lack of power supply.

He called on the MD/CEO of TCN, Mr. Usman Gur Mohammed, to use his good offices to fast track the completion of the on going and planned projects in his state, adding that the state government on its part is doing everything necessary to ensure quick execution of the projects and assured that the challenges of land and Right of Way (RoW) have been solved. He further pledged the support of the state to providing requisite backing that would aid smooth implementation of the projects.

Responding, the MD/CEO TCN, Mr. Usman Gur Mohammed, commended the Anambra State Governor, Mr. Willie Obiano on the level of infrastructure being put in place as well as his support in helping to solve the issue of Right of Way and challenges of land, noting that TCN is ready to work with the state government to provide bulk stable power to the state.

On the issue of improved bulk power supply in Anambra North, Mr Mohammed said that TCN is working in line with its well articulated and strategically driven Transmission Rehabilitation and Expansion Programme (TREP), to build a 330kV Double Circuit quad line from Alaoji –

Owerri – Ihiala – Onitsha; Reconduct the 330kV line from Onitsha – Awka –Oji River; rehabilitate and upgrade the Onitsha Substation; and upgrade the capacity of the 1x60MVA, 132/33kV Substation at General Cotton Mill (GCM); as well as complete the 2x60MVA, 132/33kV substations at Nnewi and Ojoto(Oba).

He assured the governor of timely completion of the Anambra North Project and noted that the earlier c h a l l e n g e s a s s o c i a t e d w i t h

Procurement process, poor funding, Right of Way issues, which constituted major setbacks in the projects implementation process in the past, have been resolved He further explained that the project will follow the new procurement procedures and qualification criteria for bidding that will only attract good and qualified contractors who have the capacity to deliver projects on time.

A group photograph of participants at the meeting

GOMBE STATE GOVERNMENT

READY TO PARTNER WITH TCN TO IMPROVE BULK POWER SUPPLY

By Eric Ene Ephraim

Mr Usman Gur Mohammed stated that TCN has adequate transmission capacity in Gombe State.

Mr. Mohammed also stated that under the West African Power Pool (WAPP) Eastern Backbone Project, a new transmission line will be constructed from Calabar to Kano which would also help improve bulk power in the North East, as well as adding another source of bulk power supply to that axis.

he Gombe State government

Tsaid it is ready to partner with the Transmission Company of Nigeria (TCN) to improve bulk power supply in the state in order to enhance the socioeconomic activities of its people.

The State Governor, Alhaji Muhammadu Inuwa Yahaya, made the pledge when he led a delegation to TCN on a courtesy visit on Friday, 23rd August 2019, at the TCN headquarters, Abuja.

The Governor said the visit became i m p e r a t i v e t o s e e k T C N ' s collaboration to improve power supply situation in the state, and the entire North East zone of the country in general.

He lamented that since after

privatization of the power sector in 2012, no meaningful effort has been made to improve the power distribution situation in Gombe state. He noted that the state, in its quest for more quality and stable power supply for its people, had invested hugely as counterpart funding in a National Integrated Power Project (NIPP), under the Niger Delta Power Holding Company (NDPHC).

He appealed to TCN to assist the state by building more substations and transmission lines in order to enhance bulk quality and stable electricity supply. This, he noted, would help lift his people out of the several challenges associated with poor power supply.

Responding, the MD/CEO of TCN,

According to him, poor access to electricity was responsible for the deplorable situation in the North Eastern part of the country; he assured the governor that TCN was doing everything possible to i m p r o v e t r a n s m i s s i o n infrastructure in Gombe and across the entire country.

He noted that the installed c a p a c i t y o n 1 3 2 / 3 3 k V transmission substation at Gombe, will increase when the ongoing 2x60MVA, 132/33kV substation at Billiri in Gombe State is completed. The project was initially delayed by the previous contractor but the nonperforming contract was terminated and therefore arrangement has been put in place to complete the project. He said this would boost the poor supply associated with long distance 33kV lines in the

(L-R), MD/CEO TCN, Mr Usman Gur Mohammed, Gombe State Governor, Alhaji Muhammadu Yahaya with his delegates during the meeting

GOVERNOR SIMON LALONG COMMEND

TCN'S EFFORTS AT TRANSMISSION EXPANSION IN THE STATE

By Stella Ejikonye

he Executive Governor of Plateau State,

TSimon Lalong has commended TCN for improved bulk electricity supply and promised partnering with it to further improve transmission infrastructures in the state.

Mr Lalong made this known recently, when he paid a courtesy visit to TCN to discuss ways of further improving power supply in Plateau state. Expressing gratitude for the first-hand information by the MD/CEO on concrete plans to improve bulk power supply, the governor assured of his earnest support in making TCN's work easier and successful in the state.

Earlier, the MD/CEO of TCN, Mr. Usman Gur Mohammed had urged the governor to key into partnership with TCN as other state governors have done, noting that such collaboration leads to faster completion of transmission projects.

Mr. Mohammed however applauded the governor for recent efforts in resolving challenges that helped TCN complete the installation of the Markudi Jos transmission line. He said that TCN will extend the

line to parts of Southern Plateau up to Langtan and Wase, noting that TCN was equally considering the closure of the loop up to Bauchi, so that the line can receive supply through Bauchi and Jos.

He further informed the Governor and his team that TCN, under its Transmission Rehabilitation and Expansion Program (TREP), was working assiduously to boost power supply across the country, including Plateau State. He assured the Governor that another transmission line would be constructed in addition to the existing one to boost and stabilize electricity supply in Jos and environs. He also assured the Governor that an additional 1x150MVA power transformer would be installed in Jos to augment the already existing one in Jos Substation. This, he said, would provide the necessary redundancy in the area.

The MD/CEO disclosed that TCN would soon complete the second line between Jos and Kaduna so that Jos can also receive sufficient supply through Kaduna as well as Jos-Makurdi. TCN has equally commenced the installation of three more reactors to improve voltage stability in that axis.

EBONYI STATE GOVERNMENT SEEKS MORE PARTNERSHIP WITH TCN ON BULK POWER DELIVERY

By Gabriel N. Gandu

bonyi State government

Ehas sought for more partnership with the Transmission Company of Nigeria (TCN) in delivering bulk power under the Eligible Customer policy, to boost socioeconomic activities in the state.

The state governor, Mr David Umahi made this known when he paid a courtesy visit on the Managing Director/Chief Executive Officer, TCN, Mr Usman Gur Mohammed on Thursday, 4th July, 2019 at the Corporate Headquarters in Abuja. He said with the rising number of industries in the s t a t e , e l e c t r i c i t y w a s fundamental to development and job creation.

Mr Umahi who commended TCN on the Eligible Customer Policy, gave assurance that his administration was ready to take the necessary steps in getting steady and quality power supply to Ebonyi. He also stated that he would be delighted if on-going TCN projects like the Substation at Amasiri would be completed

within a realistic timeline, adding that his administration was willing to provide every assistance necessary. He further explained that the state government would soon s i g n t w o a d d i t i o n a l Memorandum of Understanding (MoU), which he called the International Market, stating that it had been evaluated and very viable. According to him, a new government house is currently under construction, with some other structures near c o m p l e t i o n i n c l u d i n g a Secretariat, Teaching Hospital, Ecumenical Centre, School of Nursing, Industrial clusters hosting battery factory, solar power plant and an Indomie factory, among others. These, he noted, require the availability of steady power.

In his response, the MD/CEO, TCN, U. G Mohammed who lauded the efforts of the governor, assured him of TCN's willingness to partner with the state. He noted that significant investment is being made in the

transmission network with funding from multilateral donor agencies to the sum of USD1.661 billion dollars under the Transmission Rehabilitation and Expansion Programme (TREP), in order to expand the grid.

The MD recommended the Eligible Customer to the governor as a more viable option for having a regular and constant supply of electricity to power the various large projects undertaken by the state.

According to him, the primary objective of the Eligible Customer was to create a direct link between the electricity customer and Gencos without the involvement of the electricity distribution companies (Discos), whom he said needed significant investment in their network.

Mr Gur also expressed optimism towards on-going projects in the state and directed TCN engineers to look into the Amasiri Substation and get the contractor back on site for timely delivery.

MD/CEOTCN, Mr. Usman Gur Mohammed and Ebonyi state governor, Mr David Umahi

POWER GENERATING PLANTS IN NIGERIA ARE NOW FREQUENCY RESPONSIVE – Mohammed

By Osuagwu Uloma

h e M a n a g e m e n t o f

TTransmission Company of Nigeria (TCN) has disclosed that all the power generating plants in Nigeria are now frequency responsive and that has enabled the sector attain Frequency Control of 4 9 . 8 a n d 5 0 . 2 h e r t z i n t h e transmission network.

The Managing Director and Chief Executive Officer of TCN, Mr. Usman Gur Mohammed made this disclosure while speaking as a discussant at the 37th Nextier Power Dialogue with the theme “Evaluating Transmission Link for a Competitive Electricity Market”, recently in Abuja.

Mr Mohammed noted that the achievement of frequency control has gone a long way to stabilize the grid network and improve the quality of power.

He further stated that TCN has procured 260MW spinning reserve, to further stabilize the grid and reduce system collapse.

M o h a m m e d w h o d e s c r i b e d

transmission as the bridge in the electricity value chain in the country, said that efforts to stabilize the grid is an ongoing one as TCN continues to d i l i g e n t l y i m p l e m e n t t h e Transmission Rehabilitation and Expansion Programme (TREP).

One of the discussants at the event and former Chairman, Nigerian Electricity Regulatory Commission, NERC, Dr. Sam Amadi stated that building the capacity of the power sector ought to have been first carried out before privatization.

According to him, all aspects of the power value chain were under developed before the reform, with limitations in terms of covering critical places in TCN network, constraints from NERC giving license, and ease of evacuation of power, as well as other basic frailties which he stated still exist even after reformation took place in the power sector. He stressed that most of the problems today, ranging from communication backbone for fiber optic, frequency of outages and

system collapses are still traceable to those frailties that were not taken care of before privatization.

On tariff, Mr. Amadi advised that tariff should be reviewed as at when due, adding that the problem of the Discos isn't tariff, but lack of financial capacity.

Key recommendations and action points from the forum included the need to run a competitive private e l e c t r i c i t y m a r k e t b y commercializing power transactions between Gencos, Transmission and Discos, Re capitalisation of the Discos, practicing a System Operation that is fair and a bankable management of power dispatch, and the need for Nigerian Electricity Regulatory Commission (NERC) to p e r f o r m r e g u l a t i o n i m p a c t assessments periodically to review and evaluate the efficiency of preset policies. It was noted that the Nigerian electricity market is still very much in its early stages, and would transform gradually before it stabilises.

MD/CEO Mr U.G. Mohammed (Left) at a panel discussion at 37th Nextier Power Dialogue inAbuja

TCN EXECUTES MORE DONOR FUNDED TRANSMISSION PROJECTS

Th e T r a n s m i s s i o n Company of Nigeria (TCN) has said that huge power transmission projects are being executed nationwide with $1.661 billion funds obtained from multilateral donor agencies to improve bulk power delivery in the country.

The Managing Director and Chief Executive Officer of TCN, Mr Usman Gur Mohammed who made this known during TCN and donor coordination meeting th on Friday, 27 September 2019, in Abuja, said the meeting was to enable TCN brief the donors about the progress made with the funds it has so far received for the e x e c u t i o n o f v a r i o u s transmission projects in the country.

According to him, TCN was

making tremendous progress in strengthening and expanding the grid system. He added that part of the TCN startegies is improving inhouse engineering capacity to handle projects. "We have installed 67 power transformers using inhouse method of taking over projects and completing them and also helping contractors to finish their projects"

He further explained that TCN recovered 775 stranded equipment containers out of the 800 units that were left in Nigeria ports for years. Transformers installed from the recovered equipment containers by TCN engineers have upped TCN wheeling capacity from 5500MW in 2016 to 8,100 megawatts (MW) by December 2018. TCN according to him, would equally re-conductor major power transmission lines that will increase the bulk power

By Eric Ephraim Ene

delivery capacity by another 3,000 megawatts.

Some of the lines to be reconductored, he stated, included the lines between Birnin Kebbi and Sokoto; Itu and Aba, as well as key transmission lines in Lagos.

Mr Mohammed who reiterated TCN's commitment of working towards self-sustainability in its operations to earn more revenue and invest more in expanding the transmission network, used the occasion to seek the Nigerian

E l e c t r i c i t y R e g u l a t o r y

C o m m i s s i o n ( N E R C ) intervention to recover N270bn indebtedness owed it by 11 e l e c t r i c i t y d i s t r i b u t i o n companies for electricity transmission services it rendered to them.

MD/CEO, Mr U G. Muhammed (Standing) addressing Donor Agencies at the meeting in Abuja.

According to him, the debts, if paid would enable it to offset part of the $1.661 billion worth of loan it secured from multilateral agencies such as the World Bank, and African Development Bank (AfDB), French Development Agency (AFD) amongst others, to upgrade the national grid.

"The Discos owe TCN N270 billion cumulatively as debts. We can finance our operation and so all the loans we have been taking, we are now signing agreements with the Federal Ministry of Finance that TCN will pay the loans" said Mohammed.

He however decried the lack of investments at the DisCos’ network saying they need 4.3 billion dollars to match the investments in transmission network. He said the DisCos can become viable when they are

recapitalised with the appropriate funding.

In his remarks at the occasion, the Permanent Secretary in the Federal Ministry of Power, Mr Louis Edozien said the meeting was an opportunity for TCN to b r i e f t h e d o n o r s o n t h e transmission projects it is executing with the fund.

Mr. Edozien who was represented by the Director of Transmission in the ministry, Engr. Emmanuel Nosike, said; "Before now, the transmission network has not been as it is, but the current management came up and has been doing all that you are seeing today"

The Director General of the Bureau of Public Enterprises (BPE), Mr Alex Okoh lauded TCN for exploring creative means of

raising the needed capital to invest in the critical segment of the power value chain. He bemoaned the difficult challenges that face the Nigeria power sector and appealed to all stakeholders to approach issues in a more coordinated and harmonised manner with the aim of solving the problems.

An Energy Specialist from the World Bank which is one of the donors, Mr Mohammed Wakil, was optimistic that TCN would deliver on the projects. He however appealed for synergy amongst all value chain operators

The meeting was attended by representatives from World Bank, African Development Bank, (AfDB), AFD, JICA, Office of the Vice President, Federal Ministry of Power, BPE and others development partners.

Across section of DonorAgencies at the meeting inAbuja

INTERVIEW

Enforcement of Nigeria Electricity Market Rules will benefit all Stakeholders - U G Mohammed

The Managing Director/CEO of Transmission Company of Nigeria (TCN), Mr. Usman Gur Mohammed in this interview, at the sideline of West African Power Pool (WAPP) synchronization of power system meeting held recently in Abuja, said that the Nigerian Electricity Market can only be sustained with enforcement of Market Rules, stressing that there's no business or sustainable investment without rules. Excerpts:

Q u e s t i o n : W h a t i s t h e s i g n i f i c a n c e o f t h e W A P P synchronization meeting?

Last year we had this kind of meeting where we brought all the utilities in West Africa especially the generators and the transmission companies to tackle the issue of frequency control. This time around, we are doing the same thing but in a different form, we are specifically looking at the generators. So WAPP has recruited General Electric (GE) to look at Free Governor Mechanism in power Generators in West Africa.

This workshop is to sensitize power generators to co-operate with GE, so that we set the generators on free governor mode, in a way that will make it easier to synchronize the three Islands across West Africa. Currently nine (9) Countries are interconnected in West Africa, the remaining five (5) countries will be connected when we complete the transmission lines from Cote d'ivoire to Sierra Leone, to Liberia and Guinea. The other line will connect Senegal to Guinea Bissau, to Mali. These lines will be completed by next

year, by then, the 14 countries will have been connected. But for power to flow from Nigeria to Senegal and from Senegal to Nigeria, we have to synchronize t h e s y s t e m s a n d t h e synchronization process is what we are doing now.

Question: MD, you talked about the need for a cost reflective tariff and subsidy for the synchronization and the power market in WAPP to become effective, what does that mean and what does it entail?

Last year the Committee of Heads of States approved the 2 0 1 8 G e n e r a t i o n a n d Transmission Master plan for West Africa, which was done by a consultant, Mr. Tractebel. Now t h a t g e n e r a t i o n a n d transmission master plan is supposed to open up West Africa by building a 330kV line and substations from Nigeria up to Senegal, and will also enable the connection between North Africa, West Africa and Central

Africa. It also approved that all the Utilities in West Africa should have a course reflective tariff, this means they should have their revenue requirment, but tied to that is the fact that there are countries in West Africa that believe that they cannot allow cost reflective tariff to be charged. In this case, they should budget for the difference in a transparent manner. Also all utilities in West Africa should adopt competitive procurement of their services and equipments to engender a sustainable electricity market. Definitely, the market has to pay for the service that its providing.

You will agree with me that it will be difficult for Countries to budget for the entire fund required to provide electricity for the whole of West Africa, without involving the private sector, so the objective is that if you have cost reflective tariff, it will be easier for private sector participation. As at now, the only country that has fully

MD/CEO TCN, Mr. Usman Gur Mohammed

liberalised its electricity market is Nigeria, so for us to encourage the other countries to fully liberalise their market, they need to have cost reflective tariff, thats the reason why it was stated in the three directives that was issued to the ECOWAS Committee of Heads of States and Government which was approved on 22nd December 2018.

Question: Do you think there is need for more laws for the power sector to work better?

I dont think there's any thing wrong with our laws. If there's any problem, I think its with implementation. The problem is with implementation and we are working to resolve the problem with the implementation. You will agree with me that before, transmission used to be the weakest link in the power supply value chain. Today, transmission is not the weakest link, we have several completed and on going projects, and have plans to put N-1 across the country as well as resolve all problems that will make the grid a modern grid.

N o w , a s w e a r e f i x i n g transmission, efforts should also be made to ensure that we fix distribution, which is now the biggest challenge in the sector. Looking at generation, I don't think generation is a problem in Nigeria. Yes, we have issues of gas which will be solved once the liquidity problem in the power sector is resolved. The main problem is on the implementation, and this Government is doing everything to ensure that in i m p l e m e n t a t i o n , a l l p a s t mistakes, and the issues that we had are corrected.

Question: Is the market operator of TCN playing the regulator's role by enforcing discipline in the electricity market?

You know NERC is a regulator, isn't it? And am sure NERC has not complained that what we are doing is wrong. You can see clearly what we are doing, when you say we are enforcing Market Rules, it means that they are very enforceable. Is there any way you

c a n h a v e a s u s t a i n a b l e investment without rules?

There's no way, you have to have rules and it has to be obeyed. So,

empowered by law, if not, they would have taken us to court.

In reality, for the Market to function properly and be able to attract investment, people need to do the right thing. For your information, the Market Rule is one of the ruling documents governing the power sector. Others are the EPSR Act of 2005 and the grid code and you have to enforce them all, they work together and there is no conflict between the market rule, the grid code and the act. So, we enforce the Market Rule according to how it's supposed

the Market Rules explain how the market is to be governed, and inside TCN, you have what is c a l l e d t h e M A R K E T OPERATOR. Market Operator is in charge of the operation and functioning of the market, and if the Market Operator cannot enforce the rules and ensure that everybody plays according to the rules, there is no way we can have a sustainable market. Efforts are being made to ensure that market participants play by the rules and that the market becomes sustainable.

Of course, clearly, we are

to be enforced and I believe that with the enforcement, we will soon see so many benefits because there are things people have taken for granted in the past, which will stop. Also, they will stop doing things discretionally because they would have to play according to the rule.

NERC is a regulator, and nobody will work in the sector without NERC. Let me give you an example, in the market rule section 74 and sub section A and D states that if the m a

a

h a s

MD/CEO, TCN Mr U.G Mohammed addressing pressmen after the WAPP meeting in Abuja.

discovered that there is a Disco for example, who cannot meet its obligation under the market rule, the market operator is supposed to petition NERC that the disco is incapable of fulfilling his responsibility in the market. In this case, they will enforce what is called “business continuity regulation” against the Disco. All these rules are rules that NERC enforces and whatever we are doing, we inform and report to NERC.

Question: How does the sector benefit from this Market Rule enforcement regime?

The 100% invoice payment that we are enforcing now, ensures that discos comply and pay what the market specifies. The beneficiaries of the payment to the service provider is the TSP, ISO, NERC and NBET. They are all beneficiaries, so that's how it is. The balance on operational expenses of NERC, at the end of the year, goes to rural electrification.

So you see, every body benefits if we do the right thing. What is Rural Electrification suposed to do? Rural Electrification would take care of those people in the rural areas where they may not be able to pay for electricity like other people in the city. So this is how the market should be, enforcement of the market rules will not only benefit TCN, but the whole market.

Question: Are more Discos going to be sanctioned?

If they break the rules, they will be sanctioned. The market operator is administratively in TCN, but operationally, is independent according to the market rule. But I can tell you any market participant who breaks the market rule, including TSP will be sanctioned by the market operator.

Question: A recent report says that the AGF recently petitioned TCN against Phase 3 telecoms, what do you have to say about this?

Well, if you also look at that report that alleged that the Attorney General stated that TCN had violated the law, you would notice that they are not recent happenings. They were part of the inquiry that the AGF wrote requesting us to explain certain things to him, to enable him understand the issue, which people from phrase 3 published as if it's a new statement that came from the Attorney General. We have checked and have found that there is no need for us to respond to it and that is why we did not come up with a rejoinder. The Attorney General has been fully briefed.

Presently, the phrase 3 issue is actually in court. The company took TCN to court even though the contract has arbitration clause, which means that they are not supposed to go to court.

There are several pronouncements by judges that cases that have arbitration clause should not be

subjected to litigation in court. But they decided to go to court. For your information, we cancelled those agreements on the basis of the clauses in the agreement which they failed to comply with. Such as failure to pay a concession fee during the 15years contract. In total, they were supposed to pay Forty Million dollars, one paid only two million dollars while the other one paid 3.5 million dollars. Meanwhile, they have used the asset for twelve years as at the time we cancelled. The cancellation was the last resort because we had several meetings with them to get them to do the right thing, but they r e f u s e d R e c e n t l y , w e advertised for the procurement of fiber optic wherein we would put communication, OPGW in critical lines across the network showing clearly that the two companies failed to invest in the network. The concession agreement stated clearly that they should invest in the network and make it available to TCN to use it also for SCADA. A functional SCADA is necessary for a stable grid in Nigeria. For us to have a functional SCADA, we must have good communication backbone. The companies did not invest in the network as required by the contract and so we cancelled the contract and they have gone to court.

MD’S VISIT

Management Team led by MD, UG Mohammed inspecting old Ijora Power House in Lagos for a takeover and conversion into a modern power transformer repair workshop

TCN Management and Managers of Eko Atlantic Transmission Station visit the site of proposed 2x60MVA Transmission Station within the city

TCN Management team led by Usman Gur Mohammed addressing newsmen after Inspection of on-going work to upgrade the 300MVA Alagbon Transmission Substation in Lagos to 340MVA to increase its bulk transmission capacity

(Middle), Minister of Power, Engr Saleh Mamman flanked on (Left) by the Minster of State, Power, Mr. Jeddy Agba, (Right) by MD/CEO TCN, Mr. Usman Gur Mohammed during inspection of Kashimbilla Hydro Plant in Taraba State

PHOTO PAGE

MD/CEO, Usman Gur Mohammed visitsTCN telecommunications engineers currently undergoing 2-weeks hands-on training on “Operation and Maintenance ofTelecoms Equipment and Fibre Optics Installations” inAkwanga, Nassarawa State

MD/CEOTCN, Usman Gur Mohammed at theAnnual Guarantors Dinner of the Petroleum Club, Lagos, where he delivered a paper titled “PathTo Overcoming Electricity Challenges In Nigeria”

Aptitude test for prospectiveTCN Engineers at Open University of Nigeria,Abuja

MD/CEOTCN, Mr. Usman Gur Mohammed, making a presentation at the 49thAnnual Conference of Institute of Chartered Accountants of Nigeria (ICAN) recently inAbuja

TARGET 10,000MW WITH SEVEN CRITICAL INVESTMENT IN TRANSMISSION LINESTCN

By Eric Ephraim Ene

The Transmission Company of Nigeria (TCN), said it was targeting to raise its wheeling capacity to 10,000 megawatts (MW) from its current c a p a c i t y o f 8 , 1 0 0 M W , b y reconductoring seven critical transmission lines in the country.

The Managing Director/CEO, Mr. Usman Gur Mohammed gave this indication at a quarterly press conference on Wednesday, 10th July 2019, saying that as part of its efforts to attain this target, TCN would procure high capacity conductors that would enable transmission lines carry more bulk power.

According to him, TCN has i d e n t i f i e d s e v e n c r i t i c a l transmission lines which would soon be upgraded using Gap Conductors viz: Onitsha- Awka-Oji River line, the Ikeja West Alimosho – Ogba - Ota line, and the Alimosho Alausa line Others are, Kaduna – Zaria –Funtua Gusau line, BirninKebbi – Sokoto, Aba –Itu, and Kumbotso - Dan Agundi 132kV transmission lines. “By doing this, we are going to recover between 2,000 to 3,000MW capacity, which means the grid will shift from 8,100MW to at least 10,000MW”, He said.

He added that the evaluation process for the first phase of the Nigerian Transmission Expansion Project (NTEP) was ongoing. The project would put in place a 330kV

line from Alaoji in A b i a S t a t e t o O n i t s h a i n Anambra State which will correct current system constraints in that region.

T h e M D a l s o a p p e a l e d t o d i s t r i b u t i o n c o m p a n i e s (Discos) to step up investment in their networks in order to complement the enormous investment in transmission and generation sectors in the power sector value chain.

MD/CEOTCN, Mr. Usman Gur Mohammed during his presentation at the dinner

suspension was lifted. He stressed the importance of compliance to the Market Rules by participants in order to ensure sanity in the system.

On the recent sanctions of Discos in the country by the Market Operator, Mr. Mohammed stated that some of the Discos were suspended because of non compliance with the Market Rule and that when they complied, the

Concerning the separation of TSP and ISO arms of TCN, Mohammed said that the on-going massive investments in transmission across the country was part of the conditions precedent for the separation of TSP and ISO.

Cross section of participants at the meeting

NAPTIN PAYS A COURTESY CALL ON TCN MANAGEMENT

By Joy Egbase

he Management team of the

TNational Power Training I n s t i t u t e o f N i g e r i a (NAPTIN), led by the Director General, Mr. Ahmad Nagode, recently paid a courtesy call on the Management team of the Transmission Company of Nigeria (TCN) in appreciation of TCN's contributions to NAPTIN's successes.

The Managing Director of TCN and his team who received them at the C o n f e r e n c e R o o m o f T C N Headquarters, on Monday, 29th July 2019, congratulated Mr. Nagode on his confirmation of appointment as the Director General of NAPTIN saying that it was a confirmation of his hard work towards the development of the institute. He called on the Management of NAPTIN to handle the NAPTIN project the way they would handle their personal project, and encouraged the DG to create room for staff to express themselves so that they are able to give their best to the organization.

The Director General of NAPTIN, Mr. Ahmad Nagode was full of praises for

the MD of TCN whom he said, delivered on his promise to establish NAPTIN as a center of excellence in the West African Power Pool (WAPP). He further expressed his appreciation for the role of the MD TCN in making sure that NAPTIN's business plan to build Kainji Training Center, which will be of international repute and attract trainees from all parts of Africa and beyond, went through without hitches.

The DG said that NAPTIN has been able to train 120 staff of Liberia's Electricity Corporation (LEC) He revealed that through this training the organization has been able to earn foreign exchange, which has contributed to the TSA funding of Nigeria's revenue. He also revealed that they had trained a total of 300 TCN engineers who, after monitoring their performance, are doing better at their jobs. He added that he was hopeful that NAPTIN would train

more.

The Head, Transmission Service Provider (TSP) Engr. Victor Adewunmi congratulated the DG on his confirmation and appealed to the Management to include advanced trainings as part of their courses, so that staff on higher positions could also attend.

Engr Adewunmi also called on NAPTIN to expand its curriculum beyond engineering functionalities to include Power economics, Power accounting among others, noting that it is very important that the sector is properly trained to use uniform accounting system.

A

(L-R);MD/CEOTCN,Mr.UsmanGurMohammed,DGNAPTIN,Mr AhmadNagodeandDir.PublicAffairsNAPTIN,Alh.MuhammedUmaruduringthemeeting

TCN ACQUAINTS JOURNALISTS WITH RUDIMENTS OF TRANSMISSION OPERATIONS TO ENHANCE NEWS REPORTING

By Kazah Bili Akau

he Transmission Company

Tof Nigeria (TCN) engaged energy correspondents in a 2-day field workshop aimed at enhancing their understanding of the power sector, to engender a more accurate reportage of TCN activities and the power sector in general.

The workshop, which took place in the Shiroro Region of TCN in Minna, Niger State, exposed energy correspondents sourced from different media outfits to power equipment and facilities, appropriate terminologies, and s p e c i f i c a t i o n s o f v a r i o u s equipment. The training also gave t h e m f i r s t h a n d p r a c t i c a l understanding of the different stages in the power sector value chain.

While declaring the workshop open, the Assistant General Manager (Public Affairs), Mr Clement Ezeolisah, expressed delight that TCN is conveying the needed awareness to journalists to aid them in news reportage and urged participants to go the extra mile by studying other relevant documents that would further help them acquire in depth

knowledge of the sector. He said that the reform of the power sector in line with the EPSR Act 2005, brought about private ownership of generation and distribution companies, while the government retained ownership of TCN. There has however been a general misunderstanding of the roles each of these sub-sectors play, evidenced by the obvious erroneous reports by some newspapers This he said, prompted TCN to organise the workshop.

The Assistant General Manager (Transmission), Shiroro Region, Engr. B. O. Salau, who was one of the resource persons, while conducting the pressmen round Shiroro Hydro Power generation facility owned by the North-South Power Company Ltd, educated them on the mechanics of hydro power generation, including the free governor control mechanism used to control high frequency in the grid occasioned by dynamics of power demand.

During the workshop, Engr. Salau gave detailed rudiments of electric p o w e r g e n e r a t i o n a n d transmission. He explained the de-

l i n e a t i o n p o i n t s o f Genco/TCN/Disco, stating types of transformers involved, zones of protection as well as substation equipment and their functions.

The Senior Manager, System Operations, National Control Center, Osogbo, Engr. Emmanuel Umoh Casmier and the Senior M a n a g e r ( S O ) K a t a m p e Substation, Engr. Ojo Thomas Oladeji, spoke on the processes involved in meeting real time supply demand balance, power supply system in Nigeria as well as grid management and control, t h e y e q u a l l y p r o v i d e d clarifications on various situations that could cause system collapse.

While making clarification on the issue of ramping down generation c o m p a n i e s , E n g r O l a d e j i explained that the national grid does not possess the qualities of a battery and therefore cannot store power, therefore, decisions to ramp down, he said were due to reduction of load demand from the distribution side which causes an increase in frequency in the grid and that this is done automatically by the Free Governor.

TCN

Shiroro Region Led byAGM (Transmission) Engr. E.O. Salau

Energy

Shiroro

COMMUNIQUÉ

Communiqué issued at the end of the 6th meeting of the Nigerian Electricity Regulatory Commission with Nigerian Electricity Supply Industry stakeholders on September 9, 2019 at Eko hotels, Victoria Island, Lagos

he 6th Meeting of the

TN i g e r i a n E l e c t r i c i t y Regulatory Commission (NERC) with the Nigerian Electricity Supply Industry (NESI) Stakeholders held on September 9, 2019 at the Eko Hotel, Victoria Island, Lagos.

The Chairman of NERC, Prof. James Momoh, provided an overview and status of current industry events. He reported the implementation of the 2016-2018 Minor Review of the Multi Year Tariff Order (MYTO) and Minimum Remittance Framework for 2019 as a major defining event for the industry and highlighted the expectations and targets to be met by the DisCos These include accelerated meter roll-out through the Meter Asset Provider Scheme, improved collection efficiency, improved customer care standards, achievement of ATC&C Loss Reduction targets and compliance with Performance Agreements

The Chairman highlighted areas of present focus which include the procurement of Spinning Reserves, implementation of Merit Order Dispatch and resolution of Interface Issues & Challenges. He also reported on the recent workshop of the Commission on Voltage S t a b i l i t y C o n t r o l a n d Compensation Analysis and the Public Consultations on the Capping of Estimated Billing, Distribution Franchising and Competition Transition Charge.

Following extensive deliberations, the following actions were agreed:

1. The Commission together with all stakeholders in NESI shall hold a meeting with the Financial Reporting Council on September 20, 2019 to discuss the implementation of IFRS 9 & 15 after which a new

date for the submission of the 2018 Audited Financial Reports will be communicated to all licensees.

2. A Workshop on ATC&C and Energizing Power Quality shall be hosted by NERC as a follow-up to the Voltage Stability Workshop in order to close observed gaps in the cost-benefit analysis carried out during the Workshop on Voltage Control.

3. Customer Satisfaction Surveys shall be carried out by the Commission as a third party verification thus strengthening data integrity in the NESI.

4. NERC shall set up a Committee to work out the deficiencies identified on data collection from DisCos and a review carried out by the Performance Managers of DisCos.

5. NERC shall dispatch a team to verify and validate the progress of implementation of interface resolutions reached between TCN and the DisCos. Any challenges that are specific to the implementation of Interface Agreements between TCN and DisCos shall be escalated t o N E R C a n d a t i m e l i n e communicated by the Commission within which the challenges will be addressed.

6. NERC shall investigate the discrepancies between energy received as reported by MO and NBET The Commission shall continue to monitor critical feeders in real time in order to check the inconsistencies of energy received and dispatched to consumers by DisCos.

7. The need to finalise on the procurement of Spinning Reserves was re-emphasised and the meeting agreed that TCN shall consult with

GenCos for the procurement of Spinning Reserves and report back to the Commission within one week. 8. GenCos highlighted the challenges in the market and it was agreed that the Commission shall convene a dedicated meeting with them to discuss their issues with respect to payment for generated capacity, gas supply obligations and applicable exchange rates.

9. The Commission raised concern with the abysmal level of the implementation by DisCos of their Customer Enumeration, and Meter Roll-Out targets under the MAP Scheme and cautioned that enforcement action will be taken against non-compliant DisCos. It noted that only 26,000 customer meters had been installed under the MAP Scheme since its inception on May 1, 2019, emphasising that it is the responsibility of the DisCos to meter their customers and directing that DisCos take appropriate measures, including calling up the Performance Bonds entered into with MAPs if need be, to ensure that metering targets are met.

10. The Commission raised concern about verified incidences of load rejection by DisCos and cautioned against this practice, f a i l i n g w h i c h a p p r o p r i a t e enforcement action will be taken by the regulator.

11. The CBN cautioned that the disbursement of the NGN600b intervention fund is premised on an accountability framework which hinges heavily on the performance of DisCos and should be reflected in improved collection efficiency and revenue remittance. The CBN also reaffirmed its support to the Commission that enforcement action be taken against defaulting Operators.

TSP & ISO TO BECOME TWO SEPARATE COMPANIES

By Joy Egbase

Telecoms who at the end of their training, would effectively take over the implementation and management of the SCADA system in TCN, and would equally train other TCN staff in the process. Out of the fifteen that would undergo the training, five would be trained in SCADA software, another five on hardware, and the last five on Communication.

Mr. Mohammed further said that TCN would equally digitalize its control rooms for all the substations nationwide in preparation for successful SCADA operation.

The Managing Director/CEO, Transmission Company of Nigeria (TCN), Mr. Usman Gur Mohammed has said that TCN would eventually be split into two separate companies: the Transmission Service Provider (TSP) and Independent System Operations (ISO) as soon as conditions precedent to their separation into two independent companies are met.

He stated this at the participants/stakeholder's interactive forum organized by the Market Operator (MO) in Abuja, themed, “Rules and compliance for Nigeria Electricity Market Development and Sustenance”.

Mr. Mohammed stated that in the event of the split, TCN would cease to exist and the two new companies, TSP and ISO, would take over Transmission Services and System Operations/Market Operators respectively.

He however noted that the separation can only be successful when the Supervisory Control and Data acquisition (SCADA) and the Energy Management System (ESM) are effectively in place. TCN, he said, is in the process of procuring fibre optic for some critical lines towards attaining SCADA, and that the installation of SCADA would take about two years.

Speaking on efforts to put in place a functional SCADA, the MD further disclosed that TCN had consultations with relevant experts from South Africa, at the end of which the decision was taken to train fifteen TCN staff extensively on SCADA and

Mr. Mohammed commended the organizers of the Stakeholders Forum, stating that it came at a time the Market Operator started enforcing the Market Rules in an attempt to instill discipline in the Power Sector and that the forum would enable discussions on the rules and compliance.

In his remarks, a former Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr. Sam Amadi, noted that a regulated electricity market is key to the sustenance of the power sector.

He explained that the assumption that the tariff will provide for the financing of the DisCos is wrong and that even if there was an increase in tariff, the DisCos do not have good revenue management procedures to recover their money.

Dr. Sam further said that the electricity sector is a manipulative sector globally and that the regulator must create strong regulations that can put incentives to checkmate operators in the power sector, and prevent manipulation by the market participants.

In his remarks, Engr. Edmond Eje, the Market Operator (MO), expressed worry over the performance of the Nigerian Electricity Supply Industry, insisting that government would not hesitate to sanction any participant that fails to obey the Market Rules which all participant in the Nation Power Sector are committed to comply with, through the Market Participation Agreement. they signed with the Market Operator.

MD/CEOTCN, Mr. Usman Gur Mohammed, addressing participants at the meeting

FG COMMITTED TO IMPROVING POWER SUPPLY

By Gabriel Gandu

s part of efforts by the

Afederal government of achieving reliable power supply to the people, the Transmission Company of Nigeria (TCN) and the German-based firm, Siemens have commenced high level consultations that would enable it map out areas of c o l l a b o r a t i o n s t o a d d r e s s significant issues in the power sector geared towards delivering more power to Nigerian businesses and homes.

The Managing Director/Chief Executive Officer, TCN, Usman Gur Mohammed, during a meeting with representatives of Siemens at TCN headquarters Abuja, on 27th August, 2019, said he was optimistic about plans by the government to revamp the power sector, and assured Siemens of TCN engineers' commitment to expanding and modernizing Nigeria's electricity grid.

Mr Mohammed said the Siemens project was an initiative of the government and hoped that it will complement the Transmission Rehabilitation and Expansion P r o g r a m m e ( T R E P ) b e i n g implemented by TCN, funded by various donor agencies. The TREP, he noted, is based on a 20-year

He explained that in planning the project, accurate and crucial information on specifications, calibrations and diagrams would be demanded from TCN, and from the DisCos.

Least Cost Transmission Master Plan which was incidentally a r t i c u l a t e d b y a G e r m a n consultancy firm, Fitchner, for TCN.

According to him, the programme would see TCN attaining a Frequency Control in line with NERC and WAPP standard, adequate spinning reserve, S C A D A / E M S a n d c r i t i c a l i n v e s t m e n t i n l i n e s a n d substations. He further noted that to ensure economic growth and development in Nigeria, the transmission grid needed to be expanded despite unutilized load by electricity distribution companies (DisCos).

Responding, the Head, Business Development, Siemens Nigeria, Dayo Ogun while assuring TCN Management of the plans by Siemens, said that the dialogue

between both parties was certainly going to yield positive results.

Dayo noted that Siemens wants to reach a consensus with all parties involved on areas of intervention that would expand capacity and improve reliability of the sector, noting that TCN is doing a lot and that infrastructural development in transmission would be replicated in the distribution end of the value chain He explained that in planning the project, accurate and c r u c i a l i n f o r m a t i o n o n specifications, calibrations and diagrams would be demanded from TCN, and from the DisCos. This, he said, would enable Siemens to establish the total cost of intervention in the sector.

The Director- General, Bureau of Public Enterprise (BPE), Alex Okoh, who was represented by a Director from BPE, Yohanna Balo, described the partnership between the governments of Nigeria and Germany worthwhile, and comes at a time when there is an urgent need for improved power, from the w h e e l i n g c a p a c i t y o f t h e transmission to the distribution capacity of the DisCos, noting that the benefits would linger for generations to come.

(L-R), MD/CEO TCN, Usman Gur Mohammed, Head Business Development, Siemens Nigeria, Dayo Ogun and Director, Bureau of Public Enterprise (BPE), Yohanna Balo

COMMITTEE SUBMITS EVALUATION REPORT ON PRE-QUALIFICATION OF NORTHERN CORRIDOR PROJECTS

the French Development Agency (AFD)t h e d o n o r a g e n c y financing the project.

A l s o commending the team, the H e a d , Transmission

S e r v i c e

P r o v i d e r (TSP), Engr. V i c t o r

The Pre-qualification Evaluation on the Design, Manufacture, Supply, Installation of Transmission lines and Associated Substations with respect to Northern Corridor projects has been submitted by a five man evaluation committee.

The Managing Director and Chief Executive Officer of TCN, Mr Usman Gur Mohammed, who received the report in his office on Tuesday, 16th July 2019, disclosed that the Northern Corridor Project would serve as backbone for the North Core project which would enable interconnection within and beyond the West African Region and possibly up to Morocco's 1000MW solar power plant.

Mr. Mohammed noted that the Project, which seeks to strengthen some key transmission lines as well as build new ones in the North to close the transmission gap around the axis, is one of the major projects i n T C N ' s T r a n s m i s s i o n , Rehabilitation and Expansion Programme (TREP).

He commended the team for a job well done and promised to review, as well as forward their submission to

Adewunmi, noted that TCN would ensure that only competent contractors are engaged to eventually execute the project, following a transparent and competitive procurement process.

Chairman of the Five Man Committee, and General Manager (Engineering), Engr Geoffrey Nwokoye, expressed appreciation to t h e m a n a g e m e n t f o r t h e opportunity to chair such an important committee and noted that his team did a thorough job in the pre-qualification evaluation and

By Uloma Osuagwu

was confident the submission was very credible.

The project is expected to form the back bone for the WAPP North Core project that will connect Nigeria, Niger, Benin and Burkina Faso via a 330kV Double Circuit (DC) transmission line. It is also expected to execute the Kainji-Birnin-KebbiSokoto 330kV DC line, KatsinaDaura-Gwiwa-Jogana-Kura 330kV DC line, and equally reconstruct the seriously constrained Shiroro Kaduna 330kV Single Circuit transmission lines into 330kV double circuit quad conductors which will be the first of its kind in Nigeria.

Other projects also to be executed under the Northern Corridor Project include the construction of 330/132/33kV substations in Sokoto, Daura and Jogana-Kano, 132/33kV substations in Birnin Gwari, Argungu and Lambata in Niger State, as well as the rehabilitation of Jebba & Kainji switch yards to ensure adequate capacity to meet generation expansion plans of Mainstream Energy Solutions Limited.

MD/CEOTCN, Mr. Usman Gur Mohammed, receiving the report from Engr. Geoffrey Nwokoye, Chairman of the committee

Cross section of participants at the meeting

TCN STAFF TASKED ON SOURCE AND INTEGRITY OF DATA COLLECTION

By Kayode Omideji

Staff of Transmission Company of Nigeria (TCN) in charge of data collection have been tasked to ensure that their data source is reliable, data collection and collation is accurate, data dispatch is credible and the data integrity is guaranteed.

The General Manager, Monitoring and Evaluation (M&E), Engr. Cornelius Asuzu, gave the task during a two day Data Collection and Processing Workshop, organized by the department recently for TCN staff in Osogbo Region.

Engr. Asuzu explained that accurate and prompt data inputs from Operations and Maintenance (O&M) department is necessary for proper monitoring and management of Transmission System Lines and Power Transformers in the network which in turn will impact positively, the revenue generation of the company.

According to him, there are six basic data frameworks that forms the structure used by M&E Department for data collection. These includes, information of all existing substations and their locations, Single Line Diagram (SLD), Transmission line terminals, Power Transformer Capacities, Grid Metering Points and Billing Meters Data.

He stated further that regions across the country are assessed monthly on the basis of their Operations and Maintenance (O&M) activities carried out by the various works stations (Sub Regions and Work Centers) as reported in the Monthly Progress Report (MPR) by the respective regions. He also stated that with the introduction of the Monthly Reporting Forms (MRFs) by the Monitoring and Evaluation Department, TCN has been able to capture up to 98 per cent of the outages that occur in the system as well as similar O&M monthly data being captured.

Earlier in his welcome address, the General Manager (Transmission), Osogbo Region, Engr. Oladele Olaniyi, commended the Monitoring and Evaluation department (M&E), for organizing the

workshop in Osogbo Region.

He noted that accurate data collection and analysis is very germane for the successful operation, development and sustenance of the company.

He urged the participants to update their knowledge and ensure collection of accurate data, its analysis and reporting.

Agroup photograph of participantes at the workshop

Middle: Engr.Azuzu during his presentation at the workshop

Staff Issues

We thought of both of you in love today, but that is nothing new

We thought about you yesterday, and days before that too.

We think of you both in silence, we often speak your names.

Now all we have are memories, and your pictures in frames.

Memories planted along the road of life

Both of you have travelled and gone home God has you in his keeping, we have you two in our hearts, Adieu…!!!

Late Engr. Mustapha Iyanda Raji AM (Elect) JICA-PIU

(Right), Mrs. Celestina Osin, (PM PublicAffairs), Lagos Region, during her retirement ceremony (5th Right) Mr. C.YObiajunwa,AGM (T), Enugu Region, during his retirement ceremony

Mrs. Josephine Uko, (PM PublicAffairs), during her retirement ceremony

Mrs. Ruth Onyemachi, PM ( HSE), Enugu Region during her retirement ceremony

(Right), Mr. MosesAdeleye, (ManagerAudit), ISO during his retirement ceremony

(Middle), Mr. Mark Ebiega, (PM L&P), during his retirement ceremony

Late Engr AyubaTonak (General Manager)Abuja Region

MOHAMMED PLEDGES IMPROVED STAFF WELFARE AS REVENUE IMPROVES

By Gabriel N. Gandu

TCompany of Nigeria (TCN), Mr. Usman Gur Mohammed, has assured staff of the company that issues of staff welfare would be addressed as soon as revenue improves.

he Managing Director of the Transmission

explore ways to improve staff welfare. Mr. Mohammed debunked the rumour going round that Management intends to reduce staff size, saying that on the contrary, TCN requires more hands, especially engineers.

He made this disclosure during the third quarter Town Hall Meeting of the company at TCN's Corporate Headquarters on Thursday, 1st August, 2019. He expressed optimism that with the significant investment going on in various substations nationwide, in line with the Transmission Rehabilitation Expansion Programme (TREP), and anticipated recapitalization of the DISCOs, TCN's revenue would certainly improve.

The MD noted that TCN is equally exploring other avenues that would enable it earn additional income to shore up its revenue.

He called on all staff to continue to work in synergy with Management, and that Management would continue to

The MD equally congratulated the newly elected executive of the National Union of Electricity Employees (NUEE), TCN Chapter, promising to work with them to move the company forward.

He also appealed to staff to work hard to take TCN to the “Next Level”, noting that diligence is key and that it takes committed staff to diligently perform tasks properly in any organisation.

Responding, the newly elected NUEE Chairman, TCN Chapter, Comrade Christopher Adah, appealed to management to ensure that staff issues are given priority and encouraged Management to a more open communication process.

MD/CEOTCN, Mr. Usman Gur Mohammed, adressing staff at the meeting

MARKET SESYSTEM TTLEMENT

Introduction

Settlement in the Nigerian Electricity Market (NEM) is encapsulated in the process that starts with monthly collation of metering data, evaluation and audit of the metering data, effect required market adjustments such as Transmission Loss Factor (TLF) and apply the appropriate NERC approved tariff on the energy data. The process r e s u l t s i n p r o d u c i n g a n d administering the settlement statements for the various Market Participants.

The Market Rules defines settlement as the calculation of charges, due from participants who are required to make payment, and to be paid to the Participants (Generators, Discos, Special traders and Eligible Customers) who are due to receive payment.

Settlement Statement

The Settlement Statement shows:

· For Generators Generating capacity and energy quantities sold in the contract for the billing period.

· For each Distributor/special trader and Eligible Customers - Capacity and energy quantities consumed during the billing period.

The Discos also receive settlement statements for the following:

· Transmission use of system fees

· System Operator and Market Operator Administration charges

· Ancillary and Special Trader Charges

· Regulatory charges

In addition, the statement indicates charges receivable by Gencos and Service providers/ Ancillary Services charges payable by the DisCos for a particular billing cycle. In NEM, a billing cycle is 60days corresponding to REBICOL which means – Read – Bill and Collect. The consumption is made in 30days i.e. a month and the Meter Reading, Billing and Revenue Collection are made in the next 30 days.

The final document of the process from the Market Operator (MO) is the Settlement Statements forwarded to each participant twice monthly (Preliminary and Final Settlement), stating the payment to be made to each participant and service providers as a result of electricity trading in the market.

· Preliminary settlement statement is produced not later than 10 business days of each month for the participants to:

· Check if the energy figures recorded

to have been sent out or delivered are correct.

· The calculations made in arriving at the amount to pay or receive are correct.

· Inform the Market Operator of agreement or any observed error accordingly, for correction in the final Settlement Statement.

· Final Settlement Statement is produced not later than twenty (20) b u s i n e s s d a y s a f t e r t h e commencement of each month and shall contain the same information as the preliminary Settlement Statement, unless adjusted to rectify any error or discrepancies observed in the Preliminary Settlement Statement.

Settlement calendar:

· Issue preliminary settlement thstatement 9 – 10

· Receive complaints and effect thcorrections 10 - 14

· Produce final settlement statement th15 – 17

· D i s p a t c h f i n a l s e t t l e m e n t thstatement 18 – 20

· Issue invoices and credit advice 20th

Settlement process:

· M a r k e t s e t t l e m e n t s y s t e m

The Market Rules provides that the Market Operator Shall Administer the market settlement system on a monthly basis and shall develop and maintain the requisite software, acquire the data and record the results of the market settlement system. The settlement calculation is done on the settlement software. The process starts with the metering system wherever possible, each connection point shall have two meters, one of which shall be the official meter and the other, a backup meter.

Meter Data flow

· Grid meter reading is done jointly b e t w e e n t h e p a r t i c i p a n t s R e p r e s e n t a t i v e a n d T S P Representative.

· Grid meter readings are obtained from two different trading points Genco/TSP and TSP/DisCo.

· To validate the meter readings both representatives must sign the documents in agreement of the readings recorded.

· Each participant and TSP must thsend the data to MO before the 5 day of the month for further processing and reconciliation.

· MO organizes, validates, and where necessary, corrects the Meter Data received from participants, in order to establish the Metered Quantities applicable to each Participant for the settlement process (MR.27.6.5)

Settlement Calculations;

i. Data flow, organizing, validating and corrections of data culminate into settlement calculations.

ii. All Energy calculations for Settlement in the Wholesale Electricity Market shall be measured through the Commercial Metering System (MR.27.6.12)

iii.For Power Purchase Agreements or bilateral agreements contracted prior to start-up of the Transitional Electricity Market, the metering administration shall be performed in the manner established in the p r e e x i s t i n g a g r e e m e n t (MR.27.6.13)

Capacity sharing:

· Percentage sharing is based on the

percentage of total energy received from the grid

· For GenCos without effective PPAs:

· Capacity is equal to the meter reading at the GenCos busbar (before passing through the grid)

· For GenCos with effective PPAs,

· Capacity is according to the PPAs' provisions.

Energy Import:

GenCos usually import energy from the Grid for its local or domestic use, while they still generate and inject energy into the Grid. This importation of energy is captured by the bidirectional Energy Meters which simultaneously records both the energy imported as well as the energy injected into the same grid. In a case of a GenCo that imports energy from the Grid network, a separate Settlement Statement is prepared for the energy imported depicting the GenCo as energy buyer from the Grid.

The GenCo is billed for the energy import and the attributable capacity and services charge at the wholesale level like any other participant taking power from the grid.

Invoice:

Invoices are issued once every month after the final settlement statement to the Distribution companies stating:

· The summary of energy consumed by the Disco for the billing period

· The months invoice amount of the Disco

· The transmission loss factor amounts due to or from the Disco

· Total outstanding against the Disco

· The breakdown of what is due to Administrators and Regulators

· And in some rare situations adjustments that may arise as a result of dispute resolution.

Credit Advice:

Credit Advice are issued once every month after the Final Settlement Statement (FSS) to Service Providers stating:

· The summary of energy wheeled in the electricity Market for the billing period

· The amount due to Administrators

and Regulator in their respective credit notes for the billing period.

Complaints and Disputes: Administration of complaints

( M R 2 8 . 1 . 3 ) p r o v i d e s t h a t

Complaints/disputes arises where a market Participant disagrees or found an error or discrepancy on the settlement statement issued by the Market Operator.

Preliminary Settlement Statement:

· The Participant shall notify the Market Operator within five (5) business days of receiving the preliminary settlement statement.

· MO reviews complaints from participant

· If necessary, MO corrects the error in the final settlement statement

· MO issues final settlement statement Sections 28 3 also provided for complaints on the final Settlement Statement.

Final Settlement Statement:

· If Participant complains on final settlement statement (FSS),

· MO try an amicable solution;

· Adjustments (if required) are made immediately following the month in which dispute was resolved

· if the complaint is not resolved within fifteen (15) business days, it should be resolved in accordance with the dispute resolution mechanism.

· Section 28.3.1 provided "At any time within sixty (60) days of receiving a Final Settlement Statement, a Participant may notify the Market Operator of any complaint or dispute relating to its contents, concerning either:

· The contract quantities, or The settlement amount in respect of Service and Correction Charges, or

· The settlement amount in respect of Service and Correction Payments”

Up to the point of the FSS, complaint could be resolved If, however MO and the participants fails to resolve the issues raised, the complaint becomes a dispute in line with section 28.3.3 of the MR and the dispute follows the procedure in section 43 of the MR.

KNOW YOUR SUBSTATIONS; OLD ABEOKUTA TRANSMISSION SUBSTATION

CN has again completed the installation of

T2x60MVA power transformers in this substation as part of the several projects by the President Buhari's administration to upgrade transmission substations with the view to ensure a more robust grid that would engender the socioeconomic growth and development of our nation.

The upgrade of the Old Abeokuta Transmission Substation with additional new 2x60MVA power transformers and outdoor switchyard is part of the Federal Government efforts to improve power supply and stability.

Prior to the installation of the new 2x60MVA transformers, the capacity of Abeokuta Substation was only 90MVA, made up of three number 30MVA power transformers. The new 60MVA transformers have however raised the capacity of the substation to 150MVA, which translates to additional capacities for Ibadan Electricity Distribution Company (IBEDC) to off-take for its teeming customers.

With the installation of 2X60MVA 132/33kV transformers in Old Abeokuta 132/33kV Substation, Abeokuta Metropolis, University of Agriculture (UNAAB) and major towns such as Lagos road, Imeko, Shagamu and Ibafo among others, taking supply from IBEDC would now

experience improved power supply.

Under the Transmission Rehabilitation and Expansion Programme (TREP), TCN is also executing several other transmission projects in Ogun State such as Lagos-Ogun Transmission Project, which would put in place five 330kV transmission substations in the state at the same time. The 330kV substations would be sited in New Agbara, Mountain of Fire, Ogijo and Arigbajo, while the last one, a 132kV substation would be sited within Redeem Camp.

This is the first time in the history of Nigeria that four brand new 330kV and one 132kV transmission substation would be built in one state at the same time. This is because the Federal government recognizes the importance of Ogun State as an industrial hub and wants to further encourage its massive industrialization.

The new transformers recently installed in TCN’s network, such as the new 2x60MVA 132/33kV power transformers, have an inbuilt “FAST DEPRESSURIZATION” preventive technology for transformers, which has been recognized as the only proven technology against transformer explosion. This would certainly contribute in forestalling transformers explosions and fires, due mainly to high voltage occasioned by sudden drop in load.

TRANSMISSION TERMS

Distribution Feeder Circuits: These are the connections between the output terminals of a distribution substation and the input terminals of primary circuits. The distribution feeder circuit conductors leave the substation from a circuit breaker or circuit recloser via underground cables, called substation exit cables.

Distribution Transformers: Distribution transformers reduce the voltage of the primary circuit to the voltage required by customers.

Lightning Arresters: Lightning arresters are devices for protecting many different pieces of equipment such as, power poles and towers, power transformers, circuit breakers, bus structures, and steel superstructures, from damage from lightning strikes.

Load: Anything in an electrical circuit that, when the circuit is turned on, draws power from that circuit.

Metal-clad Switchgear: An outdoor metal-clad switchgear is a weatherproof housing for circuit breakers, protective relays, meters, current transformers, potential transformers, bus conductors, and other equipment. An indoor

switchgear must be protected from the environment and contains the same types of equipment as the outdoor type.

Megaohm: A unit of electrical resistance equal to one million ohms.

Megaohmmeter: An instrument for measuring extremely high resistance.

Oil Circuit Breakers: Oil circuit breakers are used to switch circuits and equipment in and out of a system in a substation. They are oil filled to provide cooling and to prevent arcing when the switch is activated.

Potheads: A type of insulator with a bell or pot-like shape used to connect underground electrical cables to overhead lines. It serves to separate the bunchedup conductors from one another in the cable to the much wider separation in the overhead line. It also seals the cable end from the weather.

Potential Transformers: Potential transformers are required to provide accurate voltages for meters used for billing industrial customers or utility companies.

DID YOU KNOW

Sitting All Day Could Shave Years Off Your Life

S i t t i n g f o r

l engthy periods

i s terrible for y o u r b o d y . Aches and pains are the least of your problemss i t t i n g t o o much can lead

t o a n e a r l y death. You face

a higher risk of muscularskeletal disorders, obesity, diabetes, cancer, heart disease and more, even if you work out regularly. If you're one of them who sit all day at work, it is recommended you change to positions often and take a two-minute ''moving break'' at least twice an hour.

Regularly Slouching In Your Chair Can Lead To Long-term Illness

If your job requires you to sit most of the day, it's best if you get a sitting device that allows you to straighten your poor posture. If not, you're contributing to a pool a chronic, long-term ailments- including arthritis and bursitis.

TCN ENGINEERS COMMENCE UPGRADE OF ILE-IFE TRANSMISSION SUBSTATION

In-house engineers of Transmission Company of Nigeria (TCN), Osogbo Region, have commenced the technical works and installation of accessories of a 60MVA transformer required for the upgrading of the 2X30MVA, 132/33kV Power Transformer at Ile-Ife Transmission Substation, Oyo State.

The General Manager (Transmission), Osogbo Region, Engr. Olaniyi Oladele disclosed this recently in his office recently, while speaking to reporters ongoing transmission projects in the Region.

Engr. Oladele, stated that the upgrading of Ile-Ife Transmission Substation, when completed, will add 1 x 60 MVA to the existing 2X30MVA, 132/32kV power transformer, thereby increasing the stations installed capacity to 120MVA.

He said “in order to achieve this goal, a task team of seasoned engineers, technologists, and technicians were put together to work on the transformer, pending the completion of the Primary 132kV Line Bay and the expected 4- Circuit Secondary Line Bays on 33kV voltage level”. He added that the task team was also expected to install the earthing transformer and carry out oil

By Omideji Kayode

filtration on the existing 2x60MVA power transformers.

“The economic importance of this power project cannot be over emphasized when successfully completed, most especially to the University Community of Obafemi Awolowo University (OAU), the Ile-Ife mini steel plants and many other Small and Medium Enterprises (SMEs) within and outside Ile-Ife town”, he said.

The upgrading of the IIe-Ife Transmission Substation is one amongst the many in-house capacity works being executed by TCN engineers in various parts of the country.

Some of the other projects executed by TCN in-house engineers in the Region includes: Installation of 1x40MVA 132/33kV transformer at Offa Transmission Station, Installation of 1x30MVA 132/33kV, primary and secondary bays at Ayede Transmission Station, Installation of 3nos 330kV Bus Capacitor Voltage Transformer (Cvt) at Osogbo Transmission Station as well as Repair work on titled pole along Ayede-Iseyin 132kV line.

WHAT IS TRANSMISSION LINES RIGHT OF WAY (TROW)?

Transmission Lines Right of Way (TLROW) is a strip of land used for the construction, maintenance and repair of transmission lines. Also called transmission lines corridor, the line is usually centered in the rightof-way with standard clearance on both sides of the line to ensure safety and access for proper maintenance.

Voltage levels of transmission lines determine the width of the TLROW or corridor; for 330kV capacity lines, the width of the TLROW is 50M. This translates to 25M on each side of the transmission line. This is recommended for safety and maintenance.

The Table below, shows the right of way for various transmission voltage level.

Voltage TLROW

330kV 50M(i.e25Monbothsidesofthe330kVtransmissionline)

132kV 30M(15Monbothsidesofthe132kVtransmissionline)

33kV

TLROW is a major consideration while planning a transmission line route and it is quite expensive in Nigeria, due to the enormous cost of buying the

long stretch of land used for this purpose.

When the transmission lines are constructed and commissioned, proper clearance and maintenance of the TLROW is important and must be consistent to avoid interference by vegetation and structures.

TCN MANAGEMENT SEEKS STAKEHOLDERS' SUPPORT TO CURB VANDALISM

By Maimuna Isah

n an effort to curb incessant acts of vandalism on

Iinstallations and properties of the Transmission Company of Nigeria (TCN), especially in Kaduna Region, the Management of TCN, Kaduna Region has called for concerted efforts from officers of the Nigerian Security and Civil Defence Corps (NSCDC), youth leaders and elders of Mando, Afaka and Farin Gida communities in Kaduna to join its fight against vandalism.

The TCN regional office which is located along Kaduna airport road in Mando community, has suffered repeated acts of vandalism, despite several efforts made by the management to reach out to the community to create awareness on the dangers of vandalism and the implication of such acts.

Speaking at the stakeholders' meeting held at the TCN premises in Mando, Kaduna, the General Manager (Transmission), Kaduna Region, Engr. Aminu Haruna, called for action from all stakeholders to protect high tension installations and government owned organizations.

He said, installations are in place to provide essential services to the people and therefore community should play pivotal roles in collaborating with TCN to protect the facilities.

Engr. Haruna lamented that the fence around the TCN Mando regional office has been damaged by hoodlums, giving room for cattle and unauthorized individuals to gain access into the switch yard which has overhead high-tension installations.

He warned that their actions have dire consequences as these installations carry electricity and are therefore very dangerous as even the low voltage overhead lines carry up to 11000 voltage electricity that can electrocute anything that comes in contact with it.

The GM(T) added that the fence would be repaired but warned that anybody caught trying to destroy it or

trespassing will be handed over to the security operatives.

He said TCN is always ready to fulfill its civil responsibility to the community but will not tolerate vandalism of its installations.

Also highlighting the dangers of vandalism, the AGM(T) Engr. M.S Nuhu disclosed that on several occasions, some trespassers have been caught trying to climb the high-tension installations. He warned that this could result to electrocution and instant death. He added that the stakeholders' meeting is a step in the right direction to resolve these challenges, to save lives and protect the company's installations He also cautioned the community about building under TCN high tension wires which is very prevalent in Mando.

In his speech, the head of the community Sani Musa Umar Sarkin Afaka, acknowledged and appreciated the efforts of TCN. He stated that respectful and meaningful engagements with members of host communities was critical to the success of any organization. He however expressed shock that none of the incidences were reported to him. He promised to engage members of the community to forestall any re-occurrence.

The Fulani Youth leader Mando, Shuaibu Tahir, confirmed that TCN had communicated him about the issue and that the youths have not heeded his warnings. Meanwhile, the leader of the Fulani people in Mando Community, Ardo Hussaini Lawal said he was hearing about the problem for the first time and promised to give the necessary support to curb the menace. The leader of Farin Gida community, Yakubu Jatau on the other hand, said he had cautioned youths in his community to desist from such acts.

The elders commended the Management of TCN for organizing the meeting and expressed understanding on the need to address the problems to ensure better coexistence between the company and its host communities.

Cross section of TCN Management Kaduna Region during a stakeholders meeting in Mando TS, Kaduna

SUMMARY OVERVIEW OF BILATERAL CONTRACTS

AS IT RELATES TO TRANSMISSION COMPANY OF NIGERIA (TCN)

By B. Hassan

INTRODUCTION

B i l a t e r a l C o n t r a c t i s a n Agreement between two parties in which each side agrees to fulfill his or her side of bargain. Every segment of the electricity value chain shares a relationship with one other segment. The segments are physically interdependent and thus require a robust commercial contractual framework.

Generally there are different t y p e s o f B i l a t e r a l Contracts/Agreements in the power sector Those types of Agreements are unique legal instruments that govern rights and obligations of parties in any power sector related contractual relationship. Some of these Bilateral Agreements are Power Purchase Agreements (PPA), Gas Supply Agreement (GSA), Sovereign Support Agreement (SSA), Engineering, Procurement and Construction Agreement ( E P C ) , O p e r a t i o n a n d Maintenance Agreement (O&M), Grid Connection Agreement (GCA), Transmission Use of System Agreement (TUoS), Market Participation Agreement (MPA) and Ancillary Service Agreement (ASA).

This write up is not intended to cover all the above-mentioned Agreements but to provide an overview of some of them that are more relevant to TCN operations.

SOME OF THE BILATERAL AGREEMENTS RELEVANT TO TCN OPERATIONS

TCN has obligations under its licenses to enter into all necessary Agreements in line with provision

of the Grid Code, with other Licensees for its operations and assume all commercial and operating risks associated with such contracts. The following are the key Bilateral Agreements that TCN enters into in the conduct of its operations:

1 ) G R I D C O N N E C T I O N AGREEMENT (GCA)

GCA is a Bilateral Agreement between Power Generating Company/Users and TCN to connect electricity generated to the Grid. The TCN is responsible for operating the transmission Grid System and allowing equal and fair access to the network by making GCA with all users. A person wishing to connect to and use the transmission network must accede to the Grid Code and enter into a GCA. The GCA sets out the contractual rights and obligations of the parties in relation to among others;

· description of plant or apparatus to be connected to the transmission system;

· confirmation that the User's plant and apparatus at the connection Point will meet the required technical standards in the Grid Code;

· confirmation that the user's p l a n t , a p p a r a t u s a n d procedures will meet the safety provisions in the Grid Code;

· Technical data specifying the load characteristic and other d a t a o f t h e p l a n t o r apparatus;

· framework on operation and maintenance of connected equipment;

· de energisation and re energisation of the connected e q u i p m e n t f r o m transmission network in the event of default.

· connection charges.

The consequences of default on the part of the User connected to TCN network under GCA could result to among others de energisation of the connected equipment, and if the default continues, it could lead to termination of the entire Agreement.

2) TRANSMISSION USE OF S Y S T E M A G R E E M E N T (TUoS)

The Transmission Use of System

A g r e e m e n t s e t s o u t t h e commercial terms for use of the transmission network system. It is an Agreement between a Generation Company/User and TCN, which sets out the terms and conditions for use of TCN's transmission network system for the purpose of conveying electricity.

Under TUoS the Generation Company/User is expected to among others issue an Irrevocable Letter of Credit in favour of TCN in an amount not less than the equivalent of three months TCN usage charge. The Letter of credit shall be replenishable and revolving throughout the term of the Agreement.

Part of the TCN obligations under TUoS is to maintain adequate Transmission capacity to accept and convey electricity to the Generation Company/User as well as ensure voltage and frequency on the system complies with the

relevant rules and standard and terms of its license. The Agreement also covers rights and obligations of the parties relating to de energisation and re energisation of the energy entry and exit points as well as metering. It also provides modalities for the payment of TCN usage charges by the User as well as payment of liquidated damages by the parties in the event of default.

In the event of default by either party to comply with its obligation under TUoS Agreement it could lead to termination of the Agreement.

3) MARKET PARTICIPATION AGREEMENT (MPA)

The MPA is a requirement under the Market Rules (MR). This Agreement is entered into between the Market Operator (MO) and Market Participants.

E x a m p l e s o f t h e M a r k e t Participants are Generation C o m p a n i e s , D i s t r i b u t i o n C o m p a n i e s , T r a n s m i s s i o n Company of Nigeria and Trading Company (i.e. Nigerian Bulk Electricity Trading Company –NBET).

The MPA provides a framework by which Participants in the Nigerian Electricity Market will comply with rules as necessary to enable MO administer Electricity Market efficiently in line with the MR. Entering into MPA accords the Participant with status and the right to participate and trade in the Electricity Market. Therefore, Market Participation Agreements set out the contractual rights and obligations of the parties in relation to among others;

· Guaranteeing of efficient, t r a n s p a r e n t a n d n o n discriminatory market services to all Participants in the market by the MO;

· Verification by the MO that each connection points where a participant injects or extracts energy has proper and adequate commercial metering in place;

· C a l c u l a t i o n s a n d payments for ancillary services, transmission charges and other

c o s t o f o p e r a t i n g a n d administration of the market by the MO;

· Compliance by the Participants of Market Rules, Grid Code, Metering Code and metering procedure by providing on timely and approved manner metering information as well as maintaining of security deposit when required of an amount established by the Market Operator to serve as guarantee for payment of all amounts due from the Participants to the Market Operator.

The MPA terminates on the date of issuance to the Participant of a termination order by the Market Operator or the date when Participant withdraws its participation or trading in the Electricity Market in accordance with withdrawal provisions in the Market Rules. However, the termination will be without prejudice of the Parties respective obligations and liabilities that occurred prior to the termination.

4) ANCILLARY SERVICE AGREEMENT

Ancillary Services are some operational reserved services procured by the TCN from Power Generation Companies. In any electrical system, it is technical requirement that the system must be kept balanced and stable. For every Megawatt of electricity produced a balancing charge known as reactive power is required to achieve the required balance and stability of the system. Where there is an imbalance, additional reactive power capability will be required. Power Plants are usually required to generate this reactive power. In addition to reactive power, the system also requires frequency response (which is a service provided to the transmission system to maintain stability in the event of sudden load or generation changes) and Black start

capability, which represent the key generators in a Power Plant that following system wide blackout, can start without the availability of an outside electric supply and are available to participate in system restoration activities.

Therefore, it is an Agreement entered into by the Power Generation Companies with TCN, to ensure the provision of certain ancillary services that are key to general system stability. The ASA contains among others the following terms and conditions that need to be complied with by the Parties;

· Ensuring that all of the Generating Units are operated at all times within their respective technical limits.

· Proper maintenance of metering devices and capability in order to measure, record and verify delivery of the Ancillary Services.

· Provision of supervisory Control and Data Acquisition (SCADA) to enable access and record the Generator's connection Equipment status and metering information on real time basis.

· P r o c e d u r e a n d determination for payment of Ancillary services provided by the Generating Companies

· Under performance of Ancillary Services by the Generating Company and how to handle such cases including referral of the defaulting generating Company to NERC for appropriate disciplinary action.

In the event of default by either party under ASA it could lead to its termination. The termination of Grid Connection Agreement (discussed above) and Power Purchase Agreement (PPA) will also automatically terminate ASA.

CONCLUSION

Electricity Market is based on Bilateral Contracts or Agreement and sanctity of such contracts is important to sustainability of the

IMPACT OF LOW MARKET LIQUIDITY ON THE NIGERIAN ELECTRICITY MARKET

ByAli BukarAhmad

he Nigerian Electricity

TMarket current state of low remittance (payment) of electricity invoices by Discos, amounting to about 25% remittance has great negative impacts in the Nigerian Electricity Market.

Liquidity of the electricity market is the market's ability to invest in itself from its own internally generated resources or its ability to borrow for investments in itself. Low remittance of invoices by Discos has adversely affected the development of Electricity Market which represents an economic loss for the country.

The Discos are complaining that Government ministries and agencies, the Military and other departments we them billions of naira. On the other hand the GenCos complain of being owed billions of naira for supplied electricity.

The low market liquidity is primarily caused by the revenue shortfall in the N E S I w h i c h m a k e s i n v o i c e settlement difficult and invariably increasing outstanding debts.

The liquidity shortfall is caused by poor collection efficiency of Discos, accumulated debt stemming from half paid or totally unpaid invoice, and l a s t l y A g g r e g a t e T e c h n i c a l Commercial and Collection (ATC & C) losses.

Nigeria omitted critical stages in the process and rushed to the high-end privatization (ownership transfer). Again, people were made to understand that privatization only means assets sales, thereby omitting the stage of letting private capital into the market, to help improve operations, without ownership transfer. The emerging electricity enterprises were not allowed to

operate according to commercial principles (to establish reference) before they were sold.

In the privatization programmes of most developing countries, revenue collection and payment mechanisms are usually secured before the market is saddled with PPA bills.

Viability of the Discos and their abilities to settle wholesale market invoices, should be reasonably guaranteed before privately developed power plants are allowed to dominate the market. In the Nigerian programme, the reverse is the case. The market was first populated with an army of IPPs, by converting all the government power plants into independent power plants, before trying to improve the viability of the Discos.

These efficiently produced PPA invoices are expected to be settled by a market with undeveloped and

inefficient revenue collection and payment systems. This is an error that has contributed to the current liquidity problem of the NEM.

Legal Implication

NBET purchases power from the generator participants with Bilateral Contracts, but sells to the load participants with Vesting Contracts. In the same market with TEM, the Gencos were promised 100% invoice payment by NBET, as part of the Bilateral Contracts which are purely agreements that demand full compliance by parties.

This Vesting Contract trading arrangement makes sure that all the load participants get some allocation at all times, whether they have the capacity to pay or not.

For reasons of viability, most of the Discos are unable to pay their full invoices. Those which p a y s i g n i f i c a n t l y a r e discouraged by those which do not pay much, particularly when no actions are taken against payment defaults. This situation dislocates the market equilibrium and leads to low liquidity problems of the electricity market.

Technical Implication

One of the reasons to justify privatization of the Nigerian electricity industry is the perennially high level of losses (ATC & C losses) in the distribution network which permanently made the industry un-viable.

One of the promises of p r i v a t i z a t i o n i s u r g e n t attention to those losses to improve sector viability Therefore, successful Discos in the privatization process were selected based on their ATC & C loss reduction plan. However, these plans have had limited success due to a number of reasons, including Declining

Market Liquidity (DML).

Implication of a system with a generating capacity of averagely 4,500MW, operated in a distribution network with ATC & C losses of about 50%:

· About 2,000MW of the power produced is either not accounted for or; · Consumers are burdened with the risk of paying for what they do not consume. Further increase in generation capacity, will widen the liquidity gap in the industry, given the prevailing conditions and structure of the Nigerian electricity market.

Impact on Generation

1. The most significant impact is the market's inability to pay for power generation.

2. Less capital for investments in capacity expansion.

3. Less funds for plant operation and maintenance.

4. Inability to pay gas bills, affecting gas supply.

5. Gas supply infrastructure cannot be developed due to lack of the necessary investment funds.

6. Overall impact is low power generation.

Impact on the Customers

1. Less energy to consumers

2. Higher retail tariffs as collection loss in Nigeria constitute a significant component of costs to be recovered from the consumers.

3. Customer frustration, apathy and disloyalty to the unity.

Impacts on the Electricity Market

1. Apart from generation, there are other market participants, e.g. transmission and the service providers.

2. The market is as good as its transmission grid

3. Liquidity problem also affects the distribution companies and the supply end.

I m p a c t o n I n f r a s t r u c t u r e Development

In a privatized electricity industry, liquidity drives infrastructure development, whereas Government may choose to deploy any amount of investments in infrastructure, whether

the market is viable or not. The vicious cycle of “inadequate investments, low cash flow and inability to borrow” perpetrates the sector's liquidity problem.

Impacts on the Economy

One of the impacts of the power sector liquidity challenge is low power generation, resulting in higher retail prices for electricity. High tariffs lead to reduced energy consumption. In order to a c h i e v e t h e i n d u s t r y r e v e n u e requirement with the reduced energy consumption, further tariff increases are inevitable.

Again, higher prices force more customers out of the network for alternative sources of energy, including firewood, candle, etc. Also, energy thefts are encouraged by higher prices of electricity , leading to more losses.

At higher prices, more customers switch to more efficient programmes of energy consumption. The aggregate result of the liquidity challenge is reduced power consumption, reduced power generation, high wholesale and retail tariffs, high costs of goods and services, increased unemployment from job losses, reduced economic activities, low government earnings from taxes, as well as low government spending and ultimately low GDP for the nation.

It is known that the volume of electricity consumed in a country has a direct relationship with the level of economic activities, as well as economic growth in the country.

Also, the percentage distribution of the total energy consumed among the major categories of consumers – Domestic, Commercial and Industrial, indicates the level of economic growth in a country.

A g a i n t h e p e r c e n t a g e e n e r g y consumption by the different consumer categories is : domestic = 65%, commercial = 20%, industrial = 10%, others = 5%. These numbers paint a gloomy picture of low economic activities.

Due to the liquidity problem in the electricity industry, the effective volume of power generation is not growing; the electricity market is failing in its obligations to the stakeholders.

ACHIEVEMENTS

Highlights of some accomplishments (July-September) by TCN engineers as the company continues to rehabilitate and expand the grid

i. Replacement of a new 33kV BCC Circuit Breaker on Capacity Bank at Yandev T/S

ii. Replacement of 132kV Isolator on Yandev - Otukpo Line at Otukpo T/S was carried out

iii. Installation of new 330kV Circuit Breaker for the newly Installed 150MVA Transformer T1A at Kumbotso T/S was completed

iv. Replacement of damaged 2No. Circuit Breaker Poles on Ogba/Alimosho 132kV Line 1 at Ikeja-West T/S was done

v. Replacement of cracked 132kV Isolator on Trf T27 at Karu T/S was done

vi. Replacement of 330kV CB Pole on Gwagwalada - Shiroro Line was done

vii. Replacement of 330kV Isolator Control Mechanism on a Line at Shiroro T/S

ix Amendment / sealing of oil leakage on T2A 30 MVA 132/33 kV TRF secondary VT at Nkalagu T/ S.

x. 3 10/08/19, Thermo Vision inspection in Abakaliki 132kv switch yard.

xi. Replacement of faulty 330kV Lightning Arrester on GT17 Bay at Delta T/S was done xii. Earth Resistance Testing on all the stations in Benin, Ihovbor, Irrua, Okada and Oghara

T/S was carried out

xiii. Installation of 33kV Incomer CB of T1A, 30MVA, 132/33kv Transformer at Oji T/S was completed

xiv. Replacement of 33kV Crompton Greaves CB on Emene Industrial Feeder at New Haven T/S was completed

.

xv. Rehabilitation and testing of TR1, 30 MVA Transformer at Kumbotso T/S was completed

xvi. Replacement of faulty 132kV Primary CB of T1A, 15MVA, 132/33kV at Ikorodu T/S was done

xvii. Installation of 110 DC Battery Bank at Ikot Ekpene T/S was completed

xviii. Installation of new station stand-by Generator set at Alaoji TS was completed

xix. Installation of 110V DC Battery Bank at Odogunyan T/S was completed

xx. Installation of new 33kV CB on Jebba/Bacita Feeder at Jebba T/S was completed

xxi. Replacement of broken 330kV Insulators on Towers 173, 484 and 495 was completed on 330kV Kainji - Birnin Kebbi Line

xxii. Replacement of shattered 330kV Secondary Red phase pole of transformer 19T3, 150MVA at Birnin Kebbi TS was completed

xxiii. Construction of new 2No. Earth Station for 75MX 33kV at Benin T/S was competed

xxiv. Restringing of snapped Benin Ajaokuta 330kV Line on Tower 188 in Benin Region

xxv. Commissioning of a new 33kV BCC Circuit Breaker on Enerhen Feeder at Effurun T/S

xxvi. Installation of new 3No. 33kV Isolators on three Feeders at Akure TS

xxvii. Replacement of faulty 33kV CB on Orumba Fdr. at Oji T/S

xxviii. Replacement of burnt and broken 33kV Y-Phase Sec. Bushing of TR3 30MVA 132/33kV Trf at Dakata T/S

xxix. Installation of new 1No. 33kV Circuit Breaker on T1A 60MVA Transformer incomer at PH Main T/S

xxx. Installation of new 33kV Circuit Breaker on T1B 60MVA Transformer secondary at Aba T/S

xxxi. Installation of new 1No. 50V Battery Bank at Kainji T/S

xxxii. Replacement of damaged 132kV Red-Phase CB Pole with its Control Cubicle on 19T2 90MVA 330/132/33kV Transformer at B/Kebbi