TRANSMISSION COMPANY OF NIGERIA(TCN) .... WHEELING POWER FOR NATIONAL DEVELOPMENT Providing Adequate and Reliable Transmission Infrastructure in a Private Sector-Led Power Industry Mack Kast MD/CEO, TCN 6 th Power Summit/ CSO’s Forum January 30, 2014 1
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TRANSMISSION COMPANY OF NIGERIA(TCN)
....WHEELING POWER FOR NATIONAL DEVELOPMENT
Providing Adequate and Reliable Transmission Infrastructure in a Private Sector-Led
Power Industry
Mack Kast
MD/CEO, TCN
6th Power Summit/ CSO’s Forum
January 30, 2014
1
TRANSMISSION COMPANY OF NIGERIA
• Motivation for TCN is to provide adequate and reliable transmission infrastructure in a Private Sector-Led Power Industry – Ought not be distracted by public vs private
– End Vision is the same • Boost the Economy of the Nation
• Improve the Standard of Living
• Stimulate Growth in the Commercial and Industrial Sectors
• Expand the Tax Base
• Improve the Infrastructure – Hospitals and Healthcare
– Education
– Transportation
– Communication
– Security
TRANSMISSION COMPANY OF NIGERIA
• Our Role
– To provide a reliable source of competitively priced electricity
– This is the engine that will drive our economy
– Our task is to make that happen without fail
– And perform beyond expectations
TRANSMISSION COMPANY OF NIGERIA
• What We Do – Transmission is the critical link between supply and load
– Generation is self-contained
– Distribution is somewhat self-contained
– In contrast:
• Transmission spans the country nationwide
• Connects north-south/east-west
• Have 5,550 km of 330 kV lines (10,400 spans)
• Have 7,000 km of 132 kV lines (19,700 spans)
• Have 28 - 330/132 kV sub-stations
• Have 122 – 132/33 kV sub-stations at distribution points
• Have 1,900 circuit breakers
• Have approximately 7,000 MW of evacuation capacity
• Funding requirements are intensive ( > $1.0 b/year)
• Incubation to commissioning timeline can be long
TRANSMISSION COMPANY OF NIGERIA
• Our Organization
– TCN is the Umbrella Corporation
– Within which, we have three Business Units
• Transmission System Provider (TSP)
• System Operator (SO)
• Market Operator (MO)
– The Business Units:
• Are Ring-Fenced
• Unbundling, at date TBD
TRANSMISSION COMPANY OF NIGERIA
• Why Three Business Units
– To implement a World Class Power Structure
– SO has two primary responsibilities (Reliability) • Merit order dispatch of supply to serve load on a real-time basis
• To prepare and update high level Master Plan for load/supply
– MO has prime responsibility to ensure competitive pricing from real-time supply points (Financial)
– TSP has responsibility to build and maintain transmission facilities to ensure reliable evacuation of power, including new generation interconnections (System)
TRANSMISSION COMPANY OF NIGERIA
• Operating in a Private Sector-led Industry
– On Generation side, private investors are demanding • Take-or-pay guarantees for evacuation
• Advance commitment to build connection facilities prior to completion of construction of power station
– On Distribution side, private investors are expecting • Reliable supply of power at connection points
• Reduced operating costs
• Ability to defer payment of invoices
TRANSMISSION COMPANY OF NIGERIA
• Short term reverberations for TCN as a result of privatization of Genco’s and Disco’s:
– Responsibility to give effect to Grid Code and Market Rules
– Labour settlement issues
– Legacy debt issues
– Expectation of load allocation
– Reduced cash flow
– Declining supply issues
TRANSMISSION COMPANY OF NIGERIA DAILY PEAK DEMAND
4517.6
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DATE
TRANSMISSION COMPANY OF NIGERIA
• Challenges Ahead
– Theft of electricity
– Vandalism
– Aging infrastructure
– Trace clearance
– Erosion
– Lack of spinning reserves
– Lack of black start capacity
– Giving effect to TEM
• Workforce training
• Application of technology
• Looping critical corridors
• Secure gas supply
• SCADA and Telemetry
• Funding for Infrastructure upgrades and future expansion
TRANSMISSION COMPANY OF NIGERIA
TRANSMISSION COMPANY OF NIGERIA
• The Future is Bright
– The private and public sectors are aligned to succeed
– From customers’ perspective, we are but one
– The unbundling of the Power Sector has created manageable entities
– Foreign investment is improving
– The Federal Government is fully committed to the delivery of a reliable source of power to build the future of the nation