Mainstream takes over Zungeru Power Plant
By : Our Correspondent.
The Mainstream Energy Solution yesterday took over the $1.3 billion Zungeru Hydro Power Plant, after winning the bid for the plant in a competitive bidding process.
The Executive Director, of Corporate Services of Mainstream, Mr. Usman Umar, while conducting journalists around the plant yesterday, said the deal was in fulfilment of his company’s goal of maintaining its leadership position in the nation’s electricity generation.
The power plant built to generate 700 MW is located in the ancient town of Zungeru, Niger State.
Speaking on the impact of the concession, Umar said it would meet Mainstream’s growth objectives in clean energy generation.
He said: “Two or three years ago, the company decided to pursue a growth programme. We wanted to grow. Growth can be through acquisition or organically.
We have the feeling of satisfaction that you derive from setting an objective and achieving it.”
The ED said his company is committed to operating the brand new Zungeru plant built with a Chinese loan in the most efficient manner in the interest of the Nigerian economy.
The concession of Zungeru Power Plant, the newest hydropower plant in the country, was won by Penstock Energy, a wholly owned subsidiary of Mainstream Energy Solution Limited.
It has four units and is fed by a large dam with a reservoir capacity of 10 billion cubic metres.
With the addition of Zungeru, said that hydro-power has become the major source of electricity in the country and with the global move towards renewable energy, more hydropower plants should be encouraged.
On the challenge of electricity transmission, Mr Umar said that Mainstream will continue to support the Federal Government in its programmes towards strengthening the national grid.
‘Need for improved transmission capacity’According to him, if the power generators ramp up electricity generation without the improved capacity of the Transmission Company of Nigeria to wheel such power, the generation companies’ businesses will suffer.
He expressed optimism that the deal with Siemens and the new pact arrangement with the Chinese will result in a significant increase in transmission capacity in the interests of stakeholders in the industry and consumers, in patticular.
The Chief Technical Officer of Mainstream, Mr. Jose Villegas, revealed that with latest addition, the company would be generating about 1, 202 MW into the National Grid.
He added that two more units will be added to the current eight units in Kainji, bringing the total number to 10 in that plant.
