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

• 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

Introduction

2

Strategies that will ensure professional management of and invest-ment 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.

3

Strategies

TSP

•Design and Construction;

•Maintenance and Field services;

•Power System Planning, Research and Development;

•Provision of unfettered access to market participants.

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.

Structure of TCN4

Operationally TCN is structured into eight

regions responsible for asset management

Services rendered by the S.O. And M.O. Are not for TCN alone but

rather for all market participants.

The TSP is

mostly concerned

with asset

management

while the S.O.

And M.O. Are

service providers.

Structure of TCN (continued)

5

• 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

Structure of TCN (continued)

6

• 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.

TCN’s Goal

7

• 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

Professional Management of TCN

8

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).

Factors external to TCN militate against attainment of

set objectives.

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);

• N-1 contingencies (expansion planning to take care of redundancies);

• Availability of reactors and capacitor banks (power quality assurance);

• Functional and properly coordinated protection relay schemes

• Adequate automatic frequency load shedding scheme

9

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.

Professional Management of TCN (continued)

10

• 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.

Investment Opportunities in TCN

11

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 1

10 Supplementary National Control Centre1

11 Regional Control Centres 2

Map 4: Existing NEPA Transmission Line System

ONITSHA

KAINJI

JEBBA/GS

JEBBA/TS

SHIRORO

AJAOKUTA

Abeokuta

Ikeja

Akure

Benin City

Asaba

PortHarcourt

Owerri

Uyo

ALAGBADO

BirninKebbi

Minna

Kaduna

Abuja

Jos

Bauchi

Gombe

Damaturu

MaiduguriKano

IIorin

AdoEkiti

Lokoja

Lafia

Makurdi

MAKURDI

EnuguAkwa

Umuahia

Ibadan

AFAMPOWER ST.

Sokoto

Gusau

Katsina

Hadejia

Jalingo

Yola

Abakaliki

Calabar

JIGAWA

KANO

KATSINA

SOKOTO

ZAMFARA

KEBBI

KWARA

KADUNA

ABUJA

NIGER

NASSARAWA

TARABA

YOBE

PLATEAU

BENUE

EBONYI

CROSSRIVER

AN AMBRA

OSUN

BAYELSA

KOGI

EDO

ABIA

RIVERS

DELTA

ONDO

OYO

ENUGU

IMO

ADAMAWA

BORNO

GOMBE

BAUCHI

EKITI

LAGOS

AKWAIBOM

ATLANTIC OCEAN

NIGER

REPUBLICOF BENIN

REPUBLICOF CAMEROON

REPUBLICOFCHAD

TRANSMISSION LINE LEGEND132 KVLINES - EXISTING

132KV LINES - AWARDED

132KV LINES - APPROVED

132KV LINES - UNDER CONSTRUCTION

330KV LINES - EXISTING

330KV LINES - AWARDED

330KV LINES - APPROVED

330KV LINES - UNDER CONSTRUCTION

BULK SUPPLY - EXISTING

BULK SUPPLY - UNDER CONSTRUCTION

BULK SUPPLY - APPROVED / AWARDED

HYDROELECTRIC POWER SUPPLY

THERMAL POWER STATIONS

132 KV 330 KV

H

SAPELEP/ST.

DELTAPOWER ST.

2 Circuits

OGUN

Osogbo

2 Circuits

3 Circuits

Notes:1. Multi-circuits are not indicated for the 132KV system.

2 Circuits

2 Circuits

2 Circuits

EGBINP/ST.

NIGERIA

Report Maps 7-24-00

TCN

DutseAzare

•The current radial nature of the grid is in itself a very serious reliability concern

Grid Reliability and Stability

•Issues of proper management of vegetation along the transmission right of way

Vegetation Management

•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.

Human Capacity Deficiencies

•This has always been in short supply either through budget appropriation or internal generation

Finance

Challenges in the Sector

14

• 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.

Mitigation of Challenges and Areas Identified for Possible Private Sector Participation

15

16

TRANSMISSION GRID STRUCTURE WITH THE SUPER GRID IN PLACE

ONITSHA

KAINJI

JEBBA/GS

JEBBA/TS

SHIRORO

AJAOKUTA

Abeokuta

Ikeja

Akure

Benin

Asaba

PortHarcourt

Owerri

Uyo

ALAGBADO

BirninKebbi

Minna

Kaduna

Abuja

Jos

Bauchi

Gombe

Damaturu

MaiduguriKano

IIorin

AdoEkiti

Lokoja

Lafia

Makurdi

MAKURDI

EnuguAkwa

Umuahia

Ibadan

Sokoto

Gusau

Katsina

Hadejia

Jalingo

Yola

Abakaliki

Calabar

JIGAWA

KANO

KATSINA

SOKOTO

ZAMFARA

KEBBI

KWARA

KADUNA

ABUJA

NIGER

NASSARAWA

TARABA

YOBE

PLATEAU

BENUE

EBONYI

CROSSRIVER

AN AMBRA

OSUN

BAYELSA

KOGI

EDO

ABIA

RIVERSDELTA

ONDO

OYO

ENUGU

IMO

ADAMAWA

BORNO

GOMBE

BAUCHI

EKITI

LAGOS

AKWAIBOM

ATLANTIC OCEAN

NIGER

REPUBLICOF BENIN

REPUBLICOF CAMEROON

REPUBLICOF

CHAD

TRANSMISSION LINE LEGEND

BULK SUPPLY POINT

HYDROELECTRIC POWER STATION

THERMAL POWER STATIONS

330 KV

H

SAPELEP/ST.

DELTAPOWER ST.

OGUN

Osogbo

EGBINP/ST.

NIGERIA

Potiskum

Niamey

132 kV

2

3

2

3

4

2

2

Aliade

Mambila

Bali

2

AFAM POWER ST.

2

2

330KV LINES – MULTIPLE CIRCUITS

330KV LINES - EXISTING

2

2

2005 : new

2

2015 : new

2015 : new

2015 : new

2015 : 3rd Circuit

2010 : new

2015 : new

2010: new

2

2

42015 : new

SAPELE

P/ST.

Okitipupa

Geregu

2015 : 2nd Circuit

Agip

Zaria

2015 : new

2015 : new

2015 : new

2015 : new

700KV LINES – SUPER GRID

700 / 330KV SUBSTATION

Mambila Hydro

Some 330kV lines especially in Lagos and Delta areas could not be indicated on this geographicalMap.See attached single diagram for Details.

NOTE:

PROPOSED SUPERGRID NETWORK

Thank You