Nigeria’s foremost power generation solution provider – Geregu Power Plc has signed a Memorandum of Understanding (MoU) with Siemens Energy to expand generation capacity at the Geregu 1 Power Plant.
A statement from the firm stated that the partnership is to ensure sustainable, resilient and efficient power generation while safeguarding assets longevity.
The synergy is aimed at supporting the growth and sustainability of the Nigeria Electricity Supply Industry (NESI).
The signing of the agreement, which took place in Berlin, Germany, on 29 May entailed discussions and proposed implementation of various solutions ranging from the upgrade of the 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 electricity 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.
A year after, the APDCL carried out the first major overhaul of its facilities at $94 million.
The overhaul raised 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.
Two years ago, 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 five per cent stake in the company.
Geregu Power said the 29 May pact will lead to the establishment of combined cycle operations to generate an additional 200mw, using lower emission turbines with an added capacity of 500mw to establish 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 to sign the MoU with the Siemens Energy team led by its Managing Director in the Middle East and Africa, Mr. Dietmar Siersdorfer.
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.
Last year, the company was awarded with its ISO certification (ISO 9001 and ISO 14001) following the demonstration of its commitment to operate with 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.
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 restated its commitment to its role as a key player in the energy sector, striving to power the nation’s growth and improve the quality of life.
