The Future of TCN: Ensuring Professional Management of and Investment in the Transmission Network. Presented by Engr. A.S.A. Bada Senior Special Assistant on Transmission to the President 2 Introduction • The decay in the power industry is immense and the resources needed to revamp the system are immense; the FGN cannot bear this burden alone • Stakeholders are eager and willing to participate in any meaningful activity that can move the electricity power sector forward if the right investment climate is created 3 Strategies Strategies that will ensure professional management of and investment in the transmission network fall into 3 broad categories: – The future of Transmission Company of Nigeria (TCN) – Ensuring professional management of TCN; – Investment in the transmission network. 4 Structure of TCN TSP • • • • S.O. • Matching supply with demand at all times (operations planning); • Maintenance of grid security and reliability; • Administration of, supervision of compliance with and enforcement of provisions of the Grid Code; M.O. • Approving entry to and registering market participants; • Market settlement; • Administration of, supervision of compliance with and enforcement of provisions of the Market Rules. Design and Construction; Maintenance and Field services; Power System Planning, Research and Development; Provision of unfettered access to market participants. 5 Structure of TCN (continued) The TSP is mostly concerned with asset management while the S.O. And M.O. Are service providers. Services rendered by the S.O. And M.O. Are not for TCN alone but rather for all market participants. Operationally TCN is structured into eight regions responsible for asset management 6 Structure of TCN (continued) • The TSP is mostly concerned with asset management while the S.O. & M.O. are service providers. • Services rendered by the S.O. & M.O. are not for TCN alone but rather for all market participants. • Operationally TCN is structured into 8 regions responsible for asset management • Expansion and rehabilitation programs are driven from Corporate Headquarters 7 TCN’s Goal • To improve on the quality of power it delivers to its customers, practice good corporate governance and ensure its services are accessible, reliable and affordable. • Ingredients of a viable corporate entity include the following: – – – – Large asset base with robust asset management philosophy; Elements of natural monopoly; Appreciable capital base or ability to attract investment; Good corporate governance and – Strategic planning. 8 Professional Management of TCN • TCN has obviously not been able to achieve any of these • What can TCN boast of out of all these? – Large asset base with poor management philosophy; – Full natural monopoly • It is important there is a paradigm shift in the present strategic planning currently adopted 9 Professional Management of TCN (continued) Strategies must be developed to achieve the desired goals/objectives: • Improvement in financial management; • Ensure reliable and qualitative energy supply; • Explore PPP opportunities; • Concentrate on core functions; • Operate the Grid Code (Ring fencing the activities of the three component sectors of TCN). Core functions can be performed better viz; • 100% availability of transmission lines and transformers other than the ones on scheduled maintenance outages (robust maintenance philosophy); Factors • N-1 contingencies (expansion external to TCN planning to take care of militate against redundancies); attainment of • Availability of reactors and set objectives. capacitor banks (power quality assurance); • Functional and properly coordinated protection relay schemes • Adequate automatic frequency load shedding scheme 10 Professional Management of TCN (continued) For TCN to be viable and attract private participation it should: • Set achievable and measurable targets; • Look seriously at business issues; • Improve overall system performance; • Cut back significantly on operating costs. 11 Investment Opportunities in TCN • TCN provides the vital transmission infrastructure between the generating stations and the distribution companies • There are currently two levels of transmission voltages in our grid: 330kV and 132kV. • At the last count there are 5650 and 6687 kilometers each of 330kV and 132kV lines respectively. • The entire infrastructure is essentially radial, without redundancies thus creating inherent reliability issues. 1 Capacity 330/132kV (MVA) 6,894 2 Capacity 132/33kV (MVA) 8,882 3 Number of 330kV Substations 28 4 Number of 132kV Substations 119 5 Total Number of 330kV circuits 60 6 Total Number of 132kV circuits 153 7 Length of 330kV lines (kM) 5,650 8 Length of 132kV lines (kM) 6,687 9 National Control Centre 10 Supplementary National Control Centre 11 Regional Control Centres 1 1 2 Map 4: Existing NEPA TCN Transmission Line System REPUBLIC OF CHAD SOKOTO Sokoto Katsina NIGER YOBE Hadejia JIGAWA Birnin Kebbi BORNO Gusau KATSINA Damaturu ZAMFARA Kano KEBBI KANO REPUBLIC OF BENIN Dutse KADUNA Bauchi SHIRORO NIGER Azare BAUCHI Kaduna KAINJI Maiduguri Jos Gombe 2 Circuits GOMBE 2 Circuits ADAMAWA Minna KWARA JEBBA/GS Abuja ABUJA JEBBA/TS IIorin 3 Circuits OYO Yola PLATEAU NASSARAWA Jalingo Lafia REPUBLIC OF CAMEROON TARABA Lokoja Osogbo Ibadan OSUN Abeokuta Ikeja AJAOKUTA EKITI OGUN ALAGBADO Makurdi Ado Ekiti LAGOS BENUE KOGI Akure EGBIN P/ST. MAKURDI TRANSMISSION LINE LEGEND ONDO Akwa 2 Circuits Asaba 2 Circuits SAPELE P/ST. DELTA 132KV LINES - UNDER CONSTRUCTION 330KV LINES - EXISTING Umuahia ABIA CROSS RIVER 330KV LINES - AWARDED 330KV LINES - APPROVED 330KV LINES - UNDER CONSTRUCTION Owerri 132KV 330KV BULK SUPPLY - EXISTING Uyo AFAM BAYELSA RIVERS POWER ST. Report Maps 7-24-00 132KV LINES - APPROVED Abakaliki ONITSHA AN AMBRA 2 Circuits Port Harcourt 132KV LINES - AWARDED EBONYI Enugu IMO DELTA POWER ST. 132 KV LINES - EXISTING ENUGU EDO Benin City Notes: 1. Multi-circuits are not indicated for the 132KV system. NIGERIA AKWA Calabar IBOM ATLANTIC OCEAN H BULK SUPPLY - UNDER CONSTRUCTION BULK SUPPLY - APPROVED / AWARDED HYDROELECTRIC POWER SUPPLY THERMAL POWER STATIONS 14 Challenges in the Sector Grid Reliability and Stability Vegetation Management Human Capacity Deficiencies Finance • The current radial nature of the grid is in itself a very serious reliability concern • Issues of proper management of vegetation along the transmission right of way • Recruitment exercises have been embargoed for more than 10 years and there has not been a coordinated approach to training in the sector until the recent incorporation of NAPTIN. • This has always been in short supply either through budget appropriation or internal generation 15 Mitigation of Challenges and Areas Identified for Possible Private Sector Participation • • • • Transmission Network expansion Dualization of critical lines to create relief Relief for congested segments of the grid Implementation of the Super Grid concept (will cost c. $5bn; FGN cannot achieve this alone) • Vegetation management • Human capacity development • Local manufacture of components. 16 PROPOSED SUPERGRID NETWORK REPUBLIC OF CHAD 2015 : new Niamey NIGER SOKOTO Sokoto Katsina 132 kV TRANSMISSION GRID STRUCTURE WITH THE SUPER 2015 : new YOBE Hadejia JIGAWA Birnin Kebbi BORNO Gusau KATSINA ZAMFARA Damaturu GRID IN PLACE KEBBI Potiskum 2015 : new Kano Maiduguri KANO 2010 : new Zaria REPUBLIC OF BENIN KADUNA 2015 : 2nd Circuit 2015 : 3rd Circuit Bauchi 2 3 SHIRORO NIGER KAINJI BAUCHI Kaduna Jos Gombe ADAMAWA GOMBE 2 SAPELE P/ST. 2 KWARA 2 Minna 2010: new JEBBA/GS 2015 : new 4 JEBBA/TS Abuja OYO NASSARAWA 3 2015 : new EKITI MAKURDI Mambila Aliade Okitipupa EGBIN P/ST. ENUGU EDO Benin Ikeja 2005 : new Mambila Hydro 2 ONDO 2 Bali BENUE KOGI Akure 2 ALAGBADO REPUBLIC OF CAMEROON TARABA Makurdi AJAOKUTA Geregu Abeokuta NIGERIA 2015 : new Ado Ekiti OSUN OGUN Lafia Lokoja Osogbo 2 Yola Jalingo ABUJA IIorin Ibadan PLATEAU 2015 : new Enugu Akwa TRANSMISSION LINE LEGEND EBONYI 700KV LINES – SUPER GRID Asaba LAGOS 2 ONITSHA 4 Abakaliki AN AMBRAAgip SAPELE P/ST. IMO 700 / 330KV SUBSTATION CROSS RIVER Umuahia ABIA DELTA POWER ST. Owerri DELTA RIVERS Uyo Port Harcourt 2 2 BAYELSA Calabar AKWA IBOM AFAM POWER ST. 330KV LINES – MULTIPLE CIRCUITS 330KV LINES - EXISTING 330 KV BULK SUPPLY POINT H HYDROELECTRIC POWER STATION THERMAL POWER STATIONS 2015 : new 2015 : new NOTE: Some 330kV lines especially in Lagos and Delta areas could not be indicated on this geographical Map. See attached single diagram for Details. 2 ATLANTIC OCEAN Thank You