The Nigerian Electricity Regulatory Commission (NERC) has approved an interim deal to buy 450 megawatts of electricity from the Zungeru Hydro Electricity Generation Company Limited. This decision aims to prevent the shutdown of the newly completed Zungeru hydropower plant, which has a total capacity of 650 megawatts.

The notice order, NERC/2024/044, was signed by Musiliu Oseni, the Vice Chairman of NERC. The commission emphasized that this approval is crucial to keep the Zungeru plant operational.

NERC’s approval covers a 105-day period starting at midnight on May 16, 2024. This special permission allows the Independent System Operator (ISO) of the Transmission Company of Nigeria (TCN) to manage the settlement of power from Zungeru for this initial period.

To prevent frequent load limitations for Distribution Companies (DisCos) and manage system imbalances, NERC has directed TCN-ISO to sign an interim energy sales agreement with Zungeru. This agreement covers up to 450MW of energy and capacity to help balance generation and offtake, improving grid stability. The agreement will be on a best-effort basis and will be effective from May 16, 2024, to August 31, 2024.

Earlier, the Minister of Power, Adebayo Adelabu, announced in May that the completion of the Zungeru plant, Nigeria’s second-largest hydropower facility after Kainji dam, adds 625MW to the national grid. This increases Nigeria’s electricity generation capacity to 4,800MW from 4,200MW.