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Gencos Pick Holes In Siemens, Federal Govt Power Contract

Generation companies (GenCos), have kicked against the recent power contract agreement signed between the Federal Government and Siemens AG without their input.

The Executive Secretary of Association of Power Generation Companies (APGC), Dr Joy Ogaji , who spoke on behalf of the generation firms observed that there are so much gaps in the contract which they would have filled if they were consulted.

According to her, the contract did not take into cognisance the GenCos expansion capacity plans.

“If  you check  the document, you will see how many companies they have consulted and you will not see a generation company. It is like you have signed agreement to sell 100 eggs by the end of July but you did not access how many hens that can produce those eggs. The assumption is that we have enough generation companies to produce that power. So, the government signing a contract on our behalf for 7,000mw, 11,000mw, 25,000mw in different phases without checking the challenges of the gencos, we do not understand. So, we are hoping that there is another document that captures the gencos which is yet to be released for us to review and see if it fits the bill. If you want me to produce more gas for a thermal plant, I need to pay my suppliers. Currently,  we are being owed about a trillion naira and most of it will go to  the gas suppliers that we  are owing and who have refused to give us gas on credit. So, if you are projecting 7,000mw,   I would expect Siemens to sit down with the gencos and the gas suppliers bearing in mind that over 80 per cent of power generated in Nigeria comes through gas sources. So, the Ministry of Petroleum—–the gas suppliers—– are the critical stakeholders you can’t overlook” she said.

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Ogaji wondered why the Federal Government should target 7,000 megawatts when the nation is already generating 7,500 megawatts

“In the 7,000 mw,  are we talking about installed? Are we talking about available? Are we talking about actual?  This is because in the generation terminology, each of these three things means different things. An installed capacity means the machine capability. “Seven thousand megawatts is shortchanging us by 500 and above.  If we are to start on the actual then 7,000 in 2021  is already constraining the gencos the more”, she observed.

Source: The Sun

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