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Nigeria’s $1.3 billion hydropower plant runs at half capacity, prompting regulatory review - BUSINESS INSIDER
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Nigeria has launched a regulatory review of its $1.3 billion Zungeru hydropower plant, which is currently supplying about 350 megawatts to the national grid, half its installed capacity.
- Nigeria’s $1.3 billion Zungeru hydropower plant is supplying about 350MW against its 700MW installed capacity.
- The country’s PPP regulator has brought government agencies and the operator together to address constraints.
- The review covers contractual and operational issues affecting the plant’s performance.
- Similar compliance reviews are planned for five other hydropower plants.
The Infrastructure Concession Regulatory Commission (ICRC) is examining contractual and operational constraints affecting the 700MW facility, which is operated by Penstock Limited under a public-private partnership.
In a statement dated October 8, the commission said it had convened a meeting in Abuja with the operator, the ministries of power and water resources, and the Bureau of Public Enterprises (BPE) to identify issues limiting the plant’s performance.
The review brings attention to the gap between investment in electricity infrastructure and the power it delivers. For Nigeria, raising output from an existing plant could help strengthen supply, although the commission did not specify how much additional electricity the review would unlock.
