Plans to grow Nigeria’s generation capacity

Nigeria

Bart Nnaji, CEO of Geometric Power, talks to The Energy Year about the company’s plans to grow Nigeria’s power generation capacity and the trends and opportunities new stakeholders in the local industry should consider. Geometric Power is an indigenous power generation and distribution company in Nigeria.

What power generation projects is Geometric Power currently planning?
We are completing our 188-MW power plant in Aba and are waiting for Nigerian Bulk Electricity Trading to complete the power purchase agreement to continue with our Oma power project. We are working on the facility with General Electric. In the next three years, we expect the Oma power project to be in construction and the Aba project to be completed. In five years, we plan to produce up to 1.2 GW of power in Nigeria.
The impact of the Oma power project will be tremendous for the country. The first phase will generate 500 MW of electricity, which will boost the power supply by 10% in Nigeria. When the project reaches its second phase, it could generate 1.08 GW.
If we cannot secure the power purchase agreement with the government, we have identified opportunities for businesses to buy power through bilateral agreements directly from us and sell it to DisCos [distribution companies]. This supports our philosophy of developing power plants as we develop distribution infrastructure in Nigeria. We are also working on solar power developments, although we have not yet completed any projects. We believe renewables are part of the way forward in Nigeria.

What competitive advantages does the company have?
We run our own gas pipeline system, which gives us a tremendous advantage as we do not rely on another company to secure the distribution of feedstock to our plants. We are then able to generate and distribute electricity, which provides a stable alternative in comparison to the grid. A key competitive edge is our quality of human resources across legal, financial and, in particular, technical capacities.

Which factors will be crucial in Nigeria meeting the increasing demand for electricity?
If, by 2023, the Nigerian power sector is still generating a capacity of 4.5 GW, we are doing something wrong. By 2030, the population will have grown past 200 million; the pressure on our power supply will only increase. Power independence is key to meeting our goals. We will see an increase in smaller communities of either solar, small-hydro or gas-powered power generation. These alternatives are reliable and cost effective in tandem with industrial-generated power.

What advice would you give to investors entering Nigeria’s power generation sector?
New companies should make sure to adhere to competence standards and think about how to attract international finance. This is achieved by performing well on due diligence and technical, financial and environmental aspects of their operations.
In the coming years, we will see gas-fuelled power becoming the dominant source of electricity generation in Nigeria, although we may not yet be able to produce as much gas as we should. There are talks about projects to increase trade, such as the Trans-Saharan gas pipeline.

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