The Nigerian Electricity Regulatory Commission (NERC) on Monday said most customers are backing a spinning reserve strategy, an ancillary service to stabilize electricity supply nationwide and cut down on incessant system collapses.
The Vice Chairman of NERC and Chairman of an extraordinary tariff review panel, Engr. Sanusi Garba at a hearing for the Transmission Company of Nigeria (TCN) in Abuja, said the submissions from stakeholders show that, “the need for spinning reserve is not in doubt.”
He gave the Nigerian Bulk Electricity Trading Plc (NBET) two weeks to submit Power Purchase Agreements (PPA) and Ancillary Services Agreements (ASA) for Generation Companies (GenCos) and TCN for harmonization.
Garba emphasized that NERC will ensure diligence so that Nigerians can get the benefit of what they pay for in ensuring they get stable power supply.
The Commissioner, Legal, Licencing and Compliance at NERC, Dafe Akpeneye, also directed the about 24 active GenCos including those operated by the Niger Delta Power Holding Company (NDPHC) to also bring written submissions on the essence of the spinning reserve.
The Managing Director of TCN, Mr Usman Gur Mohammed said TCN which manages the electricity market has implemented the free-governor across GenCos for instant grid stability.
Mohammed said, “As at today, TCN has ensured that apart from three small GenCos whom we have written letter of disconnection to, all generators are on free-governor.”
But the spinning reserve is needed to cushion instability that is beyond the free-governor. “We are not requesting that TCN but for the entire industry to prevent system collapse.
TCN has contracted 220 megawatts (MW) spinning reserve from six GenCos comprising Kainji and Jebba hydros, Odukpani, Azura, Geregu Gas and Transcorp Ughelli. “All over the world, it is a standard like in US and Ghana. We also want you to support TCN Supervisory Control and Data Acquisition (SCADA) project to further monitor and stabilize the grid,” Mohammed noted.
The Head, Generation at NDPHC, Dr Steve Ogaji said many NDPHC GenCos have been providing the services to avoid grid system collapse but that they will be incentivized if the cost is paid for in the new tariff.
However, Kano DisCo’s Chief Operating Officer (COO), Mr Rahul Singh maintained that GenCos could have used their excess capacity for the spinning reserve instead of additional cost.