SERIAL OUTAGES: Dangote, NNPCL, Total, 247 firms dump DISCOS, generate 6,500MW

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As the country battles incessant blackouts, about 250 manufacturers and academic institutions have abandoned their respective power distribution companies to generate their own electricity.

The organisations, many of whom are bulk electricity users, shunned the national grid to generate reliable electricity for themselves.

This is coming amid the high cost of electricity, fuel price hikes, incessant grid collapses, and line trippings.

In 2021, former President Olusegun Obasanjo dumped the national grid to unveil a two-megawatts solar power project at the Olusegun Obasanjo Presidential Library, Abeokuta, Ogun State.

The project, which cost about N2bn at that time, was described by the former President as a remarkably cost-effective investment.

Findings from different data sources, particularly from the Nigerian Electricity Regulatory Commission, showed that the firms have generated up to 6,500 megawatts of electricity altogether.

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This is higher than the country’s power generation which is currently hovering around 4,500MW and 5,000MW.

Further findings by our correspondent indicated that these outlets got permits from the NERC to generate captive power. Some permits were issued as far back as 2010, 2016, 2020, and 2022.

It was learned that the request for captive power generation increased since 2023, especially after President Bola Tinubu signed the Electricity Act 2023

Captive power generation permits are issued to entities that intend to own and maintain power plants exclusively for their consumption. That means the entities are not allowed to sell electricity generated from the plant to any third party.

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While some of the plants use gas as feedstock, many embrace the use of renewable energy sources like solar.

One of the biggest captive power generators is the Dangote Group.

Dangote Industries Limited has generated about 1,500MW of electricity, according to Aliko Dangote. The Dangote refinery alone has a 435MW power plant that can meet the total power requirement of the Ibadan Electricity Distribution Company.

“We don’t put pressure on the grid. We produce about 1,500 megawatts of power for self-consumption,” Aliko Dangote said last year at the Afreximbank Annual Meetings and AfriCaribbean Trade & Investment Forum in Nassau, The Bahamas.

According to data sourced from NERC, 249 firms and institutions were granted permits to generate captive power.

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The quantum of power generated by these organisations is approximately 5,180MW.

When this is added to the 1,500MW generated by the Dangote Group, it would amount to over 6,500MW being generated by the companies and learning institutions.

According to NERC, Pure Flour Mills Limited in Rivers State got a permit to generate 546MW of electricity while Nigeria LNG generates 360MW.

United Cement Company of Nigeria Limited (Lafarge Africa Limited) generates 105MW; Total E & P Nigeria Limited, 174MW; Esso Exploration & Production Nigeria Limited, 76MW; First Global Commerce Solutions Limited, 77MW; Flour Mills of Nigeria Plc, 70MW; and Lafarge Cement Wapco Nigeria Plc, 90MW.

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