WHEELING capacity of the transmission Company of Nigeria (TCN) may move from the current 6,500MW to 7,200MW by year ending, if the company is able to complete about eleven critical projects as well as new ones.
Some of these projects include Kastina Daura 132kv and 2x60MVA substation, Kafancha 2x60MVA substation, Maiduguri substation, Osogbo-Ede 132kV DC transmission line, Kaduna-Jos 330kV DC transmission line, Benin North-Osogbo 330kV DC transmission line.
Others are: Erukan -Omotosho 330kV DC transmission line, Damaturu substation, Damboa, Borno State mobile substation and mobile station at Mayo Belwa, Adamawa State which are at various levels of completion.
While addressing newsmen in Abuja on Tuesday, Managing Director/CEO TCN, Engineer Atiku Abubakar, said that the company is working towards the completion of the 11 critical projects funded in the 2016 budget.
He stated that the TCN has been able to increase its wheeling capacity from the initial 5,500MW in July 2016, to 6,500MW by upgrading several transmission substations in the country.
“As a result of our strategy to improve the wheeling of reliable power to alll parts of our great country, we have upgraded several transmission substations in the country.
“As a result of the network improvements, our wheeling capability has grown from 5,500MW when MHI left in July, 2016, to 6,500MW in six months that the Nigerian management team took over, and we are not relenting “he said.
To complement funding of its projects, he said the Federal Government has approved a Contractor Financing Model for reinforcement and rehabilitation of projects in the Transmission Company of Nigeria (TCN).
He disclosed that the pilot scheme of the financing model is expected to cover $200million worth of projects.
According to him, this would be advertised for interested investors towards reinforcement and refurbishing of its existing lines and substations.
He said:”investors are expected to receive their investments from our wheeling revenue obtained from the electricity market.”
Abubakar said although this would lead to the timely completion of projects, the exercise would only commence as soon as its cash inflow increase from the current 30 to 60 percent.
He pointed out that only this, will guarantee the repayments of investors over the time frame agreed upon.
However, the MD blamed distribution companies for the shortfall experienced in the revenue generated by the TCN.
He stressed that the DisCos are supposed to take full responsibility for driving revenue in the power sector but noted that they are not performing up to expectations.
He expressed the need for the distribution companies to step up their efforts to ensure revenue generation.
Abubakar further submitted that one of the major challenges confronting the TCN is illiquidity in the electricity marketing stating that revenue coming to the company has reduced.
He said:”it would interest you to note that TCN is being paid an average of 33%of her total invoice sent to the Market Operator between January and September 2016 which further reduced to 27% in November, 2016.”
He added that the poor return on invoices has negatively affected TCN’s operations and development of the nation’s grid.
“So far, the market owes TCN close to N100billion as arrears of wheeling charges revenue,” he said.
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