EKEDC Halts 100MW Deal, Cites Liquidity Hurdles

Negotiations Ongoing to Boost Lagos Power Supply

by Oluwatosin Racheal Alabi

EKEDC, a pivotal player in Nigeria’s electricity distribution network, ordinarily secures just over 500 megawatts from the national grid, which accounts for 12 to 15 percent of the grid’s total available power. In response to these limitations and the growing demand for electricity, EKEDC has embarked on several innovative partnerships and projects designed to supplement its power supply. Among these initiatives is a notable partnership with Elektron Energy, executed in 2023, which is on track to introduce a 30 Megawatts gas-fired embedded power generation project in Victoria Island, Lagos. This project promises to provide a stable and uninterrupted power supply to the Victoria Island area, marking a significant boost in the quality of service to its customers.

Further underscoring its commitment to improving electricity availability, EKEDC is also engaging with other Independent Power Producers to extend similar benefits to customers in the Lekki area, where the demand for enhanced power supply is sharply rising. This approach signifies a broader strategy to address the power supply challenges across its franchise areas through direct interventions and strategic collaborations.

Addressing another critical aspect of its service delivery, EKEDC has outlined a comprehensive metering strategy aimed at eliminating the existing metering gap by 2028. The company has set a realistic target to meter 120,000 customers annually over the next five years, with a clear plan that delineates the distribution of single-phase and three-phase meters across various districts within its network.

Investment in infrastructure remains a cornerstone of EKEDC’s strategy to improve service delivery. A testament to this commitment is the recent commissioning of a 2 X 20 MVA Randle Injection Substation in the Surulere area, which not only boosts the power supply by approximately 30 Megawatts but also alleviates the need for load-shedding in the area. This development is part of a series of projects aimed at enhancing the capacity and reliability of EKEDC’s distribution network.

The Power Minister, Chief Adebayo Adelabu, commended EKEDC for its strides in service delivery, infrastructural upgrades, and customer satisfaction. He emphasized the federal government’s intention to make EKEDC a model for other distribution companies and stressed the importance of EKEDC’s readiness to collaborate with the government in addressing Nigeria’s electricity challenges.

EKEDC has outlined several ongoing and upcoming projects aimed at further improving power supply to its customers. These include the construction of new feeders and substations, as well as extensive rehabilitation of existing infrastructure. Such proactive measures demonstrate EKEDC’s commitment to addressing the electricity needs of its customers and its role in the broader agenda to solve Nigeria’s persistent power supply challenges.

This pause in the agreement with the Niger Delta Power Holding Company, while a setback, opens a dialogue about the intricacies of Nigeria’s electricity supply chain, highlighting the need for sustainable solutions to liquidity constraints and infrastructure development. EKEDC’s efforts to navigate these challenges, through innovation and strategic investments, reflect a dynamic approach to ensuring that electricity, a fundamental driver of economic growth and quality of life, reaches more homes and businesses reliably and efficiently.

You may also like

Energy News Africa Plus is dedicated to illuminating the vast expanses of Africa’s energy industry.

Editors' Picks

Latest Stories

© 2024 Energy News Africa Plus. All Rights Reserved.