EnerixOne, NDPHC Partner To Tackle On-Grid Inefficiency, Provide Stable Power

Enerix One, an innovative power solutions company, has officially partnered with the Niger Delta Power Holding Company Limited (NDPHC) to provide stable and reliable on-grid power to meet all of the needs of factories and consumers at targeted parts of Ibadan Electricity Distribution Company (IBEDC) reach. The Project Framework Agreement was signed on Wednesday, October 4, 2023.

This power project is a welcome development as it aims to leverage NDPHC stranded capacity for the benefit of the end users who for years have been underserved and may have resorted to self-generation and diesel generators which are, by far and large, less economical than on-grid generation. The operating stakeholders on this project are the Ibadan Electricity Distribution Company (IBEDC) as the incumbent electricity distribution company in the Industrial Clusters; EnerixOne Limited as the private sector project developer set up to develop, finance and operate the project; and the Transmission Company of Nigeria (TCN) as the owner, operator of the Nigerian power grid.

The project directly optimises investments of more than US$5.6 billion in NDPHC’s power generation assets and mobilises capital to ensure that safe, reliable and cost-effective electricity is provided to industrial customers under technically and financially viable agreements.

EnerixOne is not a stranger to such projects as this; they have pioneered key projects, through their affiliate company Millwater, to deliver round-the-clock, uninterrupted power supply to key industrial customers in Agbara, Ogun State, another in Lekki (potential power demand of 200MW) and to high volume users in Ikoyi, Lagos State.

Speaking at the event, Mr Bayo Adesina, CEO, Enerix One reiterated that energy partnerships such as this one with NDPHC will drive economic development via power cost optimisation for industries by up to 30%. Other advantages are human capital and infrastructural enhancement across the entire grid-power value chain.

This partnership also lends credence to the NDPHC as a fast-track government-funded initiative to stabilise Nigeria’s power sector. Conceived by the Federal Government of Nigeria in 2004, the NDPHC was originally designed around seven (7) plants located in the gas-rich Niger Delta area but later expanded to ten (10) power plants. With 10 major gas-fired power stations (8 operational), NDPHC controls Nigeria’s largest power generation portfolio.