On again, off again
The Transmission Company of Nigeria (TCN) announced on Sunday that the national power grid has been restored following a partial collapse…
The Transmission Company of Nigeria (TCN) announced on Sunday that the national power grid has been restored following a partial collapse on Saturday. Ndidi Mbah, TCN’s spokesman, described the collapse as “a partial disturbance,” noting that it marks the third partial disturbance of the grid this year, alongside one total disturbance. Mbah said the collapse was likely triggered by the unexpected tripping of three units at a power-generating station, which abruptly removed 313MW from the grid. This sudden loss caused system instability and a loss of bulk supply to a section of the national grid.
The decision of the Jonathan administration and its successors to keep the Transmission Company of Nigeria (TCN) as a public entity is the most important factor for its continued travails. Following the unbundling of the National Electric Power Authority (NEPA), later named the Power Holding Company of Nigeria (PHCN), the generation and distribution segments of the power value chain were privatised, and billions of dollars have been invested by private entities to boost capacity. However, even though the installed generation capacity is over 10,000 megawatts (MW), power sent out averages below 4,000MW, and transmission grid collapses are frequent. Recurring grid collapses have become par for Nigeria’s energy industry course. The circumstances leading to these collapses are well known, with the transmission grid at the core of the problem. However, the will and wherewithal to make the necessary changes to solve the grid’s fundamental problem have been lacking. The grid remains the portion of the power value chain in the government’s hands, and it continues to be the most problematic. Those who have invested in generation and distribution cannot derive benefits fully or transmit them to consumers. This inability to evacuate power generated means generation companies must operate their plants below capacity, leading to significant financial losses. On the distribution side, a key issue was the failure of the immediate past Buhari administration to allow electricity prices to rise to a level where subsidies were removed, and market forces set prices. President Tinubu has proposed implementing these changes piecemeal but is facing opposition because they coincide with other reforms, such as Naira devaluation and petrol subsidy removal, which have pressured Nigerians’ disposable income. However, it is important to persist with the energy tariff hikes and consider privatising the TCN to put the power sector back on a growth path.