VOLUME 3, ISSUE 01 ASSESSING THE CHALLENGES IN OPERATING A GENCO, GIVEN CURRENT MARKET CONSIDERATION The Menace of Grid Collapses Developing A Viable Risk Matrix: Electricity Distribution Franchising And the Fate of the Gencos Panacea To Sector Problems In Nigeria POEM: Heart-Cry Of GenCos By Muyiwa Kolade Ÿ Arise, O, compatriot, Nigeria calls REVENGE…but they don't understand our challenges Ÿ We are ready to rush and yield to the call but Ÿ We have the capability of meeting every of your power somehow……stucked needs but the MEANS THROUGH WHICH THIS WILL Ÿ For the channel through which we were meant to pass BE IS PRIMITIVE was DARK Ÿ The blackout is not our fault but who are we to Ÿ We needed a SPARK as like a LIGHTENING but all we QUESTION THE AUTHORITY? got was SCAR from FALLING Ÿ Power cannot be stored, yet our load is being Ÿ Someone must pick us up from this pit, else we SINK rejected…WHO DO WE TELL OUR STORIES? Ÿ Dated back to the ceremonial proposal between the Ÿ Our expression may not be physical like some “organized southern and northern protectorate that births our body” that will always go on STRIKE….but considering parent nation our wastages, we also cry in silence Ÿ The ofciating minister has pronounced them, husband Ÿ Our product is not a WASTE but rather an HOTCAKE and wife…but in an attempt for the couple to kiss, their yet you're making us run on SHORTAGE noses kept coming in-between their lips Ÿ Stop RESTRICTING our INSTINCT, 'coz in no time we Ÿ As children, we kept growing with this ordeal and each may go into EXTINCT-ion time we make an attempt to speak, the structure restrain Ÿ The POWER we have may not be to RULE but it surely us from expressing our grief does feed the GRASSROOT and the CRUDE with their Ÿ We only read that there is freedom of speech, but the DAILY FOOD much more than you COULD DO aftermath of the speech…..no one can guarantee Ÿ If all our MESSES were to be WRITTEN AS TEXTS, even Ÿ 14 rulers across different spheres and yet the STABILITY the pen will leave our grip to REST OF BENJAMIN FRANKLIN'S DISCOVERY is still an Ÿ For how long will HOSPITAL OPERATION not be ILLUSION in our society completed because of CONSISTENT OUTAGE? Ÿ And in response, they listen to our YARNING and Ÿ They keep encouraging us to THINK and ACT like PACKAGED POWER for us like we are BEGGING ENTREPRENEUR but where is the POWER to be used in Ÿ Hung on the ceiling yet with an inscription, NEVER our SHOPS? EXPECT POWER ALWAYS (NEPA) Ÿ STOP treating us like election result coz we still don't Ÿ It was up and so we learn to raise our heads up to know why OUR AGREEMENT IS INCONCLUSIVE!!!! register its strike Ÿ We are the LIFEBLOOD of the NATION'S ECONOMY Ÿ And at every SPARK once in a while, we shout UP and yet we are BEING TREATED LIKE WE DON'T NEPA…..so we found ourselves here, but how long are MEAN A THING we gonna keep our head up, hoping for a SPARK when Ÿ For the record, we have an installed capacity of over the documents to be signed are down on the table? 12,500MW and available capacity of over Ÿ They told us there shall be NO MORE BLACK OUT and 7,500MW……but how do you FORCE AN ELEPHANT even ascertained it with a deadline THROUGH THE DOOR THAT IS MADE FOR AN ANT? Ÿ And happy as we were, we documented it in our log Ÿ Owed over half a trillion but on daily basis we still book for reference…DATED 1986 function Ÿ 32 years after, our nights are still darker than the Ÿ OUR SUITS STILL LAY STRAIGHT, and OUR SHOES continent of Africa in herself STILL SPARKLES in spite all the DABBLES…..WE PAY Ÿ Then the scientic OSMOSIS is not a workable THEORY OUR RENTS and still not complain about OUR DENTS for this STORY…..so we are SORRY Ÿ All we are saying is…..DO YOUR PART AND CHECK Ÿ Fast track to 2005, this body (NEPA) was unbundled and OUT OUR OWN RESULT WITH TIME there was an enchanting hope for something better than Ÿ Whether it's EGBIN or PACIFIC or GEREGU or AFAM or a CANDLE TRANSCORP……injury to one is injury to all Ÿ 8 years after, we got christened and came by the name Ÿ We are a transparent market where everybody gets its GENCO….saddled with responsibility but deprived of just due….and our core value remain: INTEGRITY, reliability OPEN COMMUNICATION, MUTUAL RESPECT, Ÿ Though we are different from what used to be in the past MEMBER PARTICIPATION and INTELLECTUAL but the operation won't make the consumers feel our EXACTITUDE impact Ÿ PAY OUR DUES and UPGRADE TO OUR Ÿ You can't be doing the same thing the same way and STREAM…..and as compatriot, we shall all serve our expect a different result father land with LOVE, and STRENGTH and FAITH…. Ÿ Ÿ After all, the voice and yarning of the consumers reach to Then there shall be UNINTERRUPTED LIGHT again and us every minute like the blood of ABEL CALLING FOR A we shall all walk freely GENCOS HEARTBEAT TABLE OF CONTENT PAGE 1. Poem: Heart-Cry Of GenCos ... ... ... ... ... ... ... Inner Front Page 2. From The Executive Secretary... ... ... ... ... ... ... ... ... 2 3. The Menace Of Grid Collapses And The Fate Of The GENCOS... ... ... ... ... 3 4. Assessing The Challenges In Operating A GENCO, Given Current Market Consideration... ... ... ... ... ... ... ... ... ... ... 6 5. Developing a Viable Risk Matrix: Panacea to Sector Problems... ... ... ... ... 13 6. Transcorp Power Limited Appoints Two Non-Executive Directors... ... ... ... 17 7. Consumers: NERC Forum Ofces... .... ... ... ... ... ... ... .... 18 8. Opinion: Electricity Distribution Franchising In Nigeria: A Bird's Eye View For A Concerned Electricity Consumer... ... ... ... ... ... ... ... ... 20 9. GENCOS Photo Gallery... ... ... ... ... ... ... ... ... ... 23 10. Health Watch: The Health Benets Of Cucumber... ... ... ... ... Inner Back Page EDITORIAL TEAM EDITOR-IN CHIEF Dr. (Mrs.) Joy Ogaji Executive Secretary, Association of Power Generation Companies (APGC) Victory Onwusor Technical Assistant, Association of Power Generation Companies (APGC) Joseph Elijah Accountant/Admin, Association of Power Generation Companies (APGC) Ifeyinwa Akwiwu Researcher/ Media Assistant, Association of Power Generation Companies (APGC) CONTRIBUTORS Albert Chris Puja, Esq Muyiwa Kolade 1 GENCOS HEARTBEAT Executive Secretary’s Note he Elections have come and gone, a shift in challenges faced by the GENCOS, it has become political agenda from change to next level still imperative that new investments and business Tunder the same political administration has opportunities be explored. Interestingly, the just been inaugurated. The Generation Companies GENCOS are also delving into renewable means of (GENCOS) as well as the various stakeholders in the generation. To that effect, tidal energy would also be Power Sector are understandably pensive about discussed to ascertain if it is complimentary or what lies in wait in the next four years specically in disruptive to on-grid electricity Generation and how the face of the daunting challenges bedeviling the it can be harnessed. NESI. For the GENCOS, the suspense is particularly nerve wrecking. For the New Government, the As you all know, this publication comes biannually hope is that there would be better reforms as well as and exciting prospect will always be discussed implementations in the pregnant administration. towards the growth of the power sector. Undoubtedly, the Power Sector has an integral role to play in the success of the incoming administration. The last four years have recorded some key policy reforms, initiatives as well as increased private sector participation. It has also chronicled various scal, liquidity and regulatory challenges. For the GENCOS, the declaration of the Eligible Customer Regime by the outgoing administration, could not have come at a better time. However with the stoppage of the Payment Assurance Guarantee (PAG) the survival of the Generation Companies have become critical especially as the liquidity challenges still loom large and the DISCOS remittance has not improved. This edition is focused on exploring viable ways for which the GENCOS can thrive in the incoming administration which is presently foggy. The edition will further scrutinize the medium through which developing a viable risk matrix in the sector can enhance efciency to tackle the lingering challenges. The world is a beehive of technologies both existing and emerging all targeted at achieving better services. Nigeria as a country will benet immensely from joining the band wagon. With the increasing demands for electricity and the accompanying Dr. Mrs. Joy Ogaji Tel: 08130922398 | Email: [email protected] 2 GENCOS HEARTBEAT The Menace of Grid Collapses And the Fate of the Gencos By Dr. (Mrs.) Joy Ogaji igerians are now used to the incessant grid Research has shown that Outages/grid collapses occur collapses in the power sector occurring when there are system disturbances along the Nmostly over the weekend, and public holidays transmission grid. Such disturbances could include a with no clear explanation as to the causes. Arguably, massive drop of load from a sub-station that would electricity forms an indispensable part of modern life cause the grid to become unstable. This could be especially in the weekends when families try to catch solved in most cases with adequate spinning reserve in up and relax. place. Experts have advised that the Nigerian grid requires up to 400 MW of spinning reserve to be stable. The nation is thrown into relative chaos during these The reality is, there is no spinning reserve procured periods with the attendant monetary setbacks as currently in the market notwithstanding TCN's hospitals, airports, train stations etc.