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Key Points
- Transcorp Power plans to add 150 megawatts to Nigeria's grid, addressing ongoing energy shortages and enhancing national electricity supply.
- CEO Owen Omogiafo announced a MoU with the Rural Electrification Agency to boost renewable energy generation across Nigeria at the Future Investment Initiative.
- Despite challenges like gas shortages limiting output, Transcorp Power reported over $35 million in profits for the first nine months of 2024.
Transcorp Power, a power company operating under the umbrella of Transcorp Group, a diversified conglomerate led by Nigerian businessman Tony Elumelu, is poised to strengthen Nigeria’s national grid by adding 150 megawatts of electricity. This initiative is part of a broader strategy to combat the ongoing energy shortages that have long plagued the nation.
Owen Omogiafo, CEO of Transcorp Group, announced the move on the sidelines of the Future Investment Initiative conference in Saudi Arabia. The company has formalized a memorandum of understanding (MoU) with the Rural Electrification Agency, aiming to enhance renewable energy generation throughout Nigeria.
“We are diligently working to bridge the energy gap,” Omogiafo said. “Transcorp Group is committed to enhancing energy availability through targeted investments and collaborations in renewable energy. The recent MoU will facilitate the injection of 150 megawatts of additional capacity into the nation's energy landscape.”
Gas shortages continue to hamper production
Despite this promising development, Omogiafo noted significant challenges, particularly a critical gas shortage that limits the company’s operational capacity. For example, the Afam power plant in Rivers State has a potential output of 301 megawatts but currently produces only 100 megawatts due to gas supply constraints.
“Nigeria's installed capacity stands at approximately 13,000 megawatts, yet we are generating around 5,000 megawatts,” she stated. “In the case of the Afam power plant, I have the capacity to produce 301 megawatts, but I am currently limited to just 100 megawatts because of the gas shortage.”
Omogiafo emphasized the need for a robust integrated gas-to-power strategy, asserting that such an approach could alleviate the energy crisis and unlock significant potential across the continent.
Strong financial performance signals strategic growth
Transcorp Power, with an installed capacity of about 2,000 megawatts, contributes 15.5 percent to Nigeria’s total electricity supply. It has bolstered its market presence through strategic acquisitions, including the Ughelli Power Plant in 2013 and the Afam Power Plant in 2020.
Under the leadership of Tony Elumelu, Transcorp Power recently reported impressive financial results, with profits exceeding $35 million for the first nine months of 2024. Its strategic initiatives and robust earnings reflect its commitment to transforming Nigeria's energy landscape and addressing the pressing demands for power in the nation.
