Abuja — Nigeria's foremost power generation solutions provider, Geregu Power Plc and Siemens Energy have signed a Memorandum of Understanding (MoU) to jointly develop solutions for capacity expansion at the Geregu 1 power plant.
A statement from the Nigerian firm stated that this is towards ensuring sustainable, resilient and efficient power generation, whilst safeguarding the longevity of assets, all aimed at supporting the growth and sustainability of the Nigeria Electricity Supply Industry (NESI).
The ceremony which took place in Berlin on Wednesday May 29, 2024 involved discussions and proposed implementation of various solutions ranging from the upgrade of Geregu 1 Power plant from its current capacity of 435mw to 500mw.
Incorporated in 2006, Geregu Power Plc began its operations in 2007 with a mission to generate and supply electric power through Nigeria's national grid. The company operates a power plant with a 435mw installed capacity.
In 2013, Geregu Power was acquired by Amperion Power Distribution Company Limited (APDCL), a Special Purpose Vehicle (SPV) made up of Calvados Global Services Limited and State Grid Shanghai Municipal Electric Power Company, the biggest power utility company in the world under the privatisation programme of the Dr. Goodluck Jonathan administration.
Thereafter, in 2014, the APDCL undertook the first major overhaul of the plant at a cost of $94 million. The overhaul increased the plant's capacity availability and utilisation from 25 per cent to 100 per cent and also increased its nameplate capacity from 414mw to 435mw.
Also, in 2019 APDCL increased its ownership stake in Geregu from 51 per cent to 80 per cent, reinforcing its commitment to the company and in 2021, APDCL further increased its holding to 100 per cent, taking full control and ownership of Geregu Power Plc.
In 2022, Geregu Power issued a N40 billion bond as part of its N100 billion bond programme, strengthening its financial base. Later in the year, the Fund for Export Development in Africa (FEDA), the impact investment subsidiary of the African Export-Import Bank, made a strategic investment by acquiring a 5 percent stake in the company.
Relating to the latest deal, Geregu Power said it will lead to the establishment of a combined cycle operations to generate an additional 200mw and new builds using lower emission turbines with an added capacity of 500mw to birth Geregu 3, bringing Geregu Power Plc's overall nameplate capacity to 1,200mw.
These initiatives, it stressed, are targeted at higher power output, improved efficiency, lower emissions, higher flexibility, longer equipment lifespan and maximising shareholder value thorough increased earnings.
Chairman, Board of Directors of Geregu Power Plc, Mr. Femi Otedola, led the Geregu Power Plc team while Mr. Dietmar Siersdorfer , Managing Director , Middle East and Africa led the Siemens Energy team.
Geregu Power is also listed on the Nigerian Exchange, becoming the first power generating company to be listed on the main board of the Nigerian Bourse.
In 2023, the company was awarded with its ISO certification (ISO 9001 and ISO 14001). Demonstrating its commitment to operating based on the highest quality standards.
Besides, as part of its strategic initiatives, Geregu Power Plc is partnering with the Lagos State Government to deliver the state's first private electricity transmission network.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
The company said it continues to consolidate its investments in the power sector by pursuing mergers and acquisitions alongside strategic partnerships to expand its market share and boost operational efficiency.
The power plant consists of three simple cycle natural gas-fired Siemens V94.2 STG5-2000E gas turbine generator units, with a total installed capacity of 435mw.
The turbine units, designated GT11, GT12, and GT13, are each designed to produce 145mw at 15.75 kV, which is then stepped up to 330 kV via a 173.6 MVA power transformer. The plant now generates, on average 10 per cent of Nigeria's total power consumption.
Geregu Power Plc said it remains dedicated to its role as a key player in Nigeria's energy sector, striving to power the nation's growth and improve the quality of life for all Nigerians.
