Mainstream Energy Solution Ltd, has commenced operations at the Zungeru hydropower plant- a facility funded by China, almost a year after securing the concession, this is according to a statement on Thursday.
The company’s subsidiary, Penstock Energy Ltd, under Mainstream Energy Solution Ltd, is now managing the newly built 700-megawatt plant in Zungeru, central Nigeria, facilitated by a $1.3 billion loan from China.
In February of last year, the Bureau of Public Enterprises (BPE) granted the concession to Mainstream Energy. Under the agreement, Mainstream Energy is obliged to pay the Nigerian government $70 million annually for three decades in exchange for operating the plant.
- The CEO of Mainstream Energy, Audu Lamu stated, “This is where the real work starts in ensuring that the asset is managed in accordance with international standards,”
The Kainji and Jebba hydroelectric plants, managed by Mainstream Energy, collectively produce 1,338 megawatts, contributing approximately 33% to Nigeria’s current power generation capacity of 4,000 megawatts.
The Chief Technical Officer of Mainstream, Mr. Jose Villegas noted that with the latest addition, the company would contribute around 1,202 MW to the National Grid.
He further stated that two additional units would be incorporated into the existing eight units at Kainji, thus raising the total number of units at the plant to 10.
What you should know
- The Zungeru plant is Nigeria’s largest hydropower project and ranks among the biggest power initiatives across Africa to secure a preferential loan facility from the Export-Import Bank (Exim Bank) of China.
- The Zungeru hydropower project will provide power generation, flood protection, and water for irrigation.
- The 700-megawatt (MW) Zungeru hydropower plant is estimated to generate 2.64 billion kilowatt-hours (kWh) of electricity a year, which will meet close to 10% of Nigeria’s total domestic energy needs.
