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

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    Austine Eze
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    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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    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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    7 views8 pages

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

    Uploaded by

    Austine Eze
    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.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 8

    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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