Gas Shortages, Low Water Levels Weaken Nigeria’s Power Generation – NISO

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Nigeria’s electricity generation has declined due to gas supply constraints affecting thermal power plants and low water levels at hydroelectric facilities, the Nigerian Independent System Operator (NISO) has said.

It attributed the development to reduced availability of the two major sources of power on the national grid.

The Nigerian Independent System Operator (NISO) disclosed this on Thursday, warning that the combined challenges have reduced the volume of electricity available for distribution companies (DisCos), resulting in fewer hours of power supply and increased load shedding across their networks.

The development comes amid rising temperatures and increased demand for electricity, particularly from households and businesses that depend on fans, air conditioners and other cooling equipment to cope with the prevailing heat.

In a statement signed by its management, NISO attributed the decline in electricity generation to persistent gas supply constraints affecting thermal generating stations and reduced output from hydroelectric power plants due to lower water inflows into reservoirs.

According to the system operator, inadequate gas availability has prevented some thermal power stations from operating at their available capacity, while declining water levels have similarly affected the ability of hydroelectric facilities to generate electricity.

“The Nigerian Independent System Operator wishes to inform the public that the current decline in electricity generation on the national grid is primarily attributed to constraints in gas supply to thermal power generating stations and reduced output from hydroelectric power stations,” the operator stated.

NISO explained that the limited availability of gas had constrained the operational capacity of affected thermal generating stations, while reduced water inflows into reservoirs had weakened the generation capacity of hydroelectric plants.

The combined effect, it said, had reduced the quantum of electricity available on the national grid and consequently affected allocations to electricity distribution companies.

The operator added that the shortfall had forced DisCos to adjust their electricity supply schedules, with consumers experiencing reduced supply hours and increased load shedding.

It stated that the extent of the impact varied across the country, depending on the volume of electricity available for dispatch and the corresponding allocations to individual distribution companies.

“Consequently, the reduction in available generation has affected the quantum of electricity allocated to Distribution Companies (DisCos) for onward supply to consumers, thereby resulting in reduced hours of electricity supply and increased load shedding across distribution networks, with the level of impact varying according to available generation and the corresponding allocations to individual DisCos,” NISO said.

The latest decline is also expected to increase operating costs for businesses, particularly manufacturers, small-scale enterprises and commercial establishments that depend on electricity for production, refrigeration, water pumping and other essential operations.

With reduced electricity supply, many businesses may be compelled to increase their reliance on petrol- and diesel-powered generators, potentially raising production costs and adding to the financial pressure created by persistent energy supply challenges.

NISO, however, acknowledged the difficulties arising from the generation shortfall, expressing concern over the impact on electricity consumers and other stakeholders in the power sector.

The operator said it was pursuing measures to diversify the energy mix supplying the national grid as part of efforts to strengthen energy security and reduce the vulnerability of electricity generation to disruptions affecting individual sources.

“NISO acknowledges the impact of the current generation shortfall on electricity consumers nationwide and appreciates the concerns expressed by members of the public and other stakeholders.

“While we are actively working on the diversification of our energy mix for the national grid to ensure security of supply, NISO remains committed to maintaining grid stability, optimising the dispatch of available generation, and ensuring the secure, reliable and efficient operation of the national grid within prevailing operational constraints,” the statement added.

NISO reiterated its commitment to managing available generation efficiently and maintaining the stability and reliability of the national grid despite the prevailing operational constraints.

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