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Sapele Power PLC: Presentation To Nigerian Bulk Electricity Trader June 2021

Sapele Power Plc presented to Nigerian Bulk Electricity Trader in June 2021 regarding plans to return its thermal power plant in Delta State, Nigeria to its licensed capacity of 1020MW. The presentation outlined Sapele Power's history and current 250MW output, and proposed an investment framework to address challenges in the power sector including regulatory approval, gas supply and transport risks, payment delays, and transmission/grid issues. Sapele Power acknowledged expectations around active agreements, cost-reflective tariffs, adequate gas supply and transmission have not matched reality. The business plan proposes increasing available capacity through existing turbines and a fast-track 300MW TM2500 plant, subject to sufficient gas, grid access, and prompt payment.

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Austine Eze
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80 views

Sapele Power PLC: Presentation To Nigerian Bulk Electricity Trader June 2021

Sapele Power Plc presented to Nigerian Bulk Electricity Trader in June 2021 regarding plans to return its thermal power plant in Delta State, Nigeria to its licensed capacity of 1020MW. The presentation outlined Sapele Power's history and current 250MW output, and proposed an investment framework to address challenges in the power sector including regulatory approval, gas supply and transport risks, payment delays, and transmission/grid issues. Sapele Power acknowledged expectations around active agreements, cost-reflective tariffs, adequate gas supply and transmission have not matched reality. The business plan proposes increasing available capacity through existing turbines and a fast-track 300MW TM2500 plant, subject to sufficient gas, grid access, and prompt payment.

Uploaded by

Austine Eze
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Sapele Power Plc

Presentation To

Nigerian Bulk Electricity Trader

June 2021
CONTENTS
• About Us
• Overview of Business Plan
• Challenges: Sector Specific
• Plant Capacity
ABOUT US
• Sapele Power Plc (SPP)
• a 1020MW thermal plant located in
Delta State Nigeria.
• Consists of 6 steam turbines of
120MW each and 4 gas turbines of
75MW each.
• OEM was Brown Boveri Corporation
(now General Electric), and
commissioned in 1978-1982.

• Acquired by Eurafric Power


Limited in February 2014
• Present output of 250MW
• Goal: return the plant to its
license capacity of 1020MW
BUSINESS PLAN
INVESTMENT FRAMEWORK
• Perceived Risks • BPE Assurances
• Regulatory Approval Risk • Generation Licence
• Gas Supply Risk • Active Agreements
• Gas Transport Risk • Power purchase Agreement
• Payment Risk • Gas Purchase & Supply
• Price Risk Agreement
• Transmission/Evacuation Risk • Gas transport Agreement
• Grid Connection Agreement
• Market Risk
• Ancillary Services Agreement
• Political/Expropriation Risk
Challenges: Industry Specific
EXPECTATION REALITY
Active Agreements • NONE of the industry agreements are live
• Operations on a best endeavour basis
• Total exposure to business risks
Revenue when due • Belated payments
• Partial settlements (Some recent improvements)
Cost reflective tariffs/FX • Non adherence to indices necessitating adjustment of tariff
• Political interference
Adequate Gas • Insufficient volumes
• Quality Issues (Some recent developments)
• Constant closure of TFP
• New gas supply (NBET delay)
Transmission / Grid Challenges • Inadequate wheeling capacity.
• NCC load limitation/FGMC
• Grid collapses/disturbance
Market Risks • Hug disparity between generation and collection figures
• Liquidity • Government subsidy
• Forex • Forex differential?
PLANT CAPACITY
• Available Capacity
• 250MW
• ST01 – 70MW
• ST02 – 70MW
• 4 Power Barges – 120MW
• Subject to
• Sufficient gas supply - 75 mscf
• Unhindered grid evacuation
• Prompt securitized payment
• Fast Track Project
• TM2500 Plant – 300MW
• Deployed and commissioned within 6 months
THANK YOU

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