The Niger Delta Power Holding Company Plc (NDPHC) has announced a strategic move to commercialize approximately 200 megawatts of its 2,000 megawatts of stranded electricity by December 2025, through new Power Purchase Agreements (PPAs) with eligible off-takers and traders. The initiative, revealed by NDPHC’s Managing Director, Jennifer Adighije, during a visit to the Nigerian Independent System Operator (NISO) in Abuja, aims to address the persistent issue of underutilized generation capacity that has long hampered the company’s operations.
The NDPHC, a government-owned entity responsible for managing the National Integrated Power Projects (NIPP), has faced significant challenges due to low electricity uptake by distribution companies (DisCos), transmission constraints, and financial burdens. Adighije highlighted that the new agreements, currently pending approval from the Nigerian Electricity Regulatory Commission (NERC), are part of a broader strategy to enhance liquidity and ensure the commercial sustainability of the company. The move comes as a response to the dismal uptake of power, which Adighije previously criticized in May 2025, noting its severe impact on NDPHC’s operational efficiency.
Recent improvements in the company’s infrastructure have bolstered its capacity to deliver on these agreements. Adighije noted that NDPHC has achieved significant strides in plant availability, with key assets like the Omotosho and Alaoji power plants undergoing successful revivals. The Alaoji plant, offline for two years due to gas supply metering disputes, is expected to resume operations by August 2025, further strengthening NDPHC’s ability to meet off-taker demands once regulatory approval is secured. The company’s efforts to optimize its operations have also included the resuscitation of five turbine units across its Calabar, Omotosho, Sapele, and Ihovbor plants, contributing an additional 625 megawatts to the national grid.
The agreements mark a shift toward bilateral trading arrangements, enabled by a July 25th NERC order directing generation companies to engage directly with eligible customers. This regulatory change has empowered NDPHC to prioritize direct supply to bankable off-takers, bypassing traditional reliance on the Nigeria Bulk Electricity Trading Plc (NBET), with which NDPHC lacks a formal PPA. Adighije emphasized that the absence of stable off-take arrangements has left much of the company’s 5,000-megawatt installed capacity underutilized, with only about 30 percent of its invoices currently being paid. She expressed optimism that the new PPAs, once approved, will improve cash flow and enable NDPHC to meet its obligations to partners and stakeholders.
During the visit to NISO, Adighije also raised concerns about disparities in the treatment of public and private generation companies, urging the system operator to consider NDPHC’s substantial contributions to Nigeria’s transmission infrastructure when issuing directives. The company has invested over N500 billion in transmission projects, including transformers, substations, and transmission lines, making it a critical player in the nation’s power sector. Adighije called for greater regulatory fairness and sensitivity to the procedural challenges faced by public firms, particularly in procurement and financial approvals.
The collaboration with NISO is seen as a pivotal step toward unlocking NDPHC’s stranded capacity. The system operator has pledged to ensure equitable dispatch of electricity from NDPHC’s plants, aiming to optimize the use of its vast generation assets. With Nigeria’s power sector grappling with persistent challenges, including gas supply limitations and transmission bottlenecks, the success of these agreements could set a precedent for addressing stranded power and enhancing grid reliability.
As NDPHC awaits NERC’s approval, the company remains focused on its mission to bolster Nigeria’s energy landscape. The commercialization of 200 megawatts by year-end represents a critical step toward reducing the financial strain of stranded capacity and delivering reliable power to industrial and commercial consumers across the country.
Source: Leadership Newspaper
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