with agency reports
18 December 2015, Sweetcrude, Abuja – Nigeria’s largest power company Egbin Power Plc, is planning to double its generation capacity to 2,640MW over the next three to four years, which is expected to cost $1.8 billion, the CEO said in an interview.
According to CEO Dallas Peavey, Egbin Power has been investigating the possibility of investing in solar power and transmission infrastructure, two areas that have hindered the growth of the country.
Egbin Power is 70% owned by a joint venture between state-run Korea Electric Power Corp (Kepco) and Nigerian conglomerate Sahara Group, with the balance held by the Nigerian government.
Out of 1,320MW of installed power generation, Egbin’s power plants have only been generating 440MW
In an interview with Reuters, Peavey said that the company, which has six 220MW gas-fired power plants, has only been producing 440MW since it was privatised.
“We are going through and into the process of developing phase II, to double the capacity of Egbin. In three to four years it would be completed,” Peavey said.
Responsible for providing a third of the country’s power, Peavey said that the company was looking to boost renewable energy generation over the next 18-months.
He said talks with U.S. Exim Bank, the World Bank and African Development Bank were ongoing to fund the phase II expansion plan and that it has spent $250 million to commission engineering analysis and evacuation studies for transmission.
Despite the privatisation of the sector in 2013, which came about to boost foreign direct investment and improve the overall sector, there remains a lack of investment in the gas and transmission infrastructure which is still owned by government.
Peavey said, “The power that we give to the grid is not getting to the (distribution companies). The biggest issue is the transmission constraints and the gas, and the government is going to have to lead us out of it.”