By Abubakar Ismail
Nigeria’s electricity sector is preparing for a significant overhaul, with the Transmission Company of Nigeria (TCN) setting an ambitious target to slash transmission losses by 6.5 per cent by 2026.
This move comes in response to the country’s ever-growing demand for power and aims to improve the overall efficiency and reliability of the national grid.
The directive, issued by the Nigerian Electricity Regulatory Commission (NERC) in December 2023, sets a clear goal for TCN: reduce the Transmission Loss Factor (TLF) from the current average of 7.94 per cent to 6.5 per cent within the next three years which will translate to a potential saving of millions of megawatt-hours of energy annually, which can then be delivered to homes and businesses across the country.
The concept of TLF serves as a crucial indicator of operational efficiency. It delineates the proportion of energy generated by power plants that is either lost during transmission or utilized within the transmission stations, without reaching intended recipients such as electricity distribution companies (DisCos) or international customers.
According to the latest report released by the regulatory Commission, TLF stands as a significant factor influencing the overall performance of the energy transmission network. “TLF provides insight into the efficiency of our power transmission infrastructure,” stated NERC. “It allows us to assess the effectiveness of energy transmission and identify areas for improvement.”
The Need for Improvement: Rising Demand and Inadequate Infrastructure
The impetus for this change stems from several factors. Firstly, Nigeria’s electricity demand is projected to reach a staggering 12,521 megawatts by 2027, outpacing the current capacity of the TCN infrastructure. This growing demand, coupled with aging and inefficient transmission lines, contributes to the high TLF.
NERC said: “The current TCN’s operational capacity is inadequate to meet the power supply needs of the Nigerian Electricity Supply Industry (NESI) as well as supporting Nigeria’s energy transition commitments for the integration of variable renewable energy resources to the national grid.
“Thus, this PIP proposes to undertake numerous interventions towards the improvement of network performance requirements in alignment with the current and future demands of the NESI.
“Over the period of 2024-2026, the proposed interventions are developed with the objective of achieving efficient dispatch of generation and reduced transmission losses, complete short- and medium-term system visibility, improve transmission line performance and improve network reliability and frequency control.”
Secondly, the NERC report highlights the urgent need to modernize the grid to accommodate Nigeria’s energy transition goals. Integrating renewable energy sources like solar and wind power requires a robust and adaptable transmission network, something the current system struggles with.
TCN’s Multi-Pronged Approach to Reaching the Target
To achieve the ambitious 6.5 per cent TLF reduction, TCN has outlined a multi-pronged approach:
• Investing in infrastructure upgrades- This includes rehabilitating existing transmission lines, building new ones, and incorporating modern technologies to improve network efficiency.
• Reducing network interruptions- TCN aims to decrease the frequency of partial and complete grid collapses from the current average of nine per year to just one by 2026.
• Meeting demand in full- The Company commits to fulfilling 100 per cent of the energy needs approved by the NERC for electricity distribution companies, ensuring consistent power supply to consumers.
• Enhancing grid visibility and control- Implementing a Supervisory Control and Data Acquisition (SCADA) system will provide real-time insights into grid performance, enabling better management and control.
• Improving safety and security- TCN prioritizes reducing accidents and enhancing safety measures across its operations and grid infrastructure.
Challenges and the Road Ahead
While the target is ambitious, it is not without its challenges. Funding constraints, bureaucratic hurdles, and technical complexities could impede progress. However, the potential benefits for Nigeria’s economy and its citizens are undeniable.
A more efficient and reliable grid translates to lower electricity costs, improved business productivity, and better living standards for millions of Nigerians. The success of this initiative hinges on collaborative efforts from TCN, NERC, the government and private investors. By working together, they can pave the way for a brighter future powered by a more robust and efficient electricity grid.