Following the recent collapse of the power grid for the second time this year, the Federal Government has unveiled plans to reform the power sector by unbundling the Transmission Company of Nigeria (TCN) into two distinct entities.
Chief Adebayo Adelabu, the Minister of Power, made this announcement during the opening of a Ministerial Retreat organized by the Federal Ministry of Power in Abuja.
Recognizing TCN as the weakest segment in the Nigerian Electricity Supply Industry (NESI), Chief Adelabu disclosed that TCN would be restructured into the Independent System Operator (ISO) and the Transmission Service Provider (TSP).
The restructuring aims to address the challenges faced by TCN and align with the evolving landscape of State Electricity Markets, potentially decentralizing the national grid into regional grids interconnected by a new higher voltage national or super-grid.
The minister emphasized the need for stakeholders and operators to renew their efforts to achieve the goals of the government’s reform initiatives, which aim to improve power supply and make electricity consistently available across the country.
Chief Adelabu expressed concern over the inefficiency in Nigeria’s electricity supply, highlighting the significant operating costs associated with the reliance on diesel- and petrol-powered generation capacity.
While addressing the retreat’s participants, the minister stressed the importance of implementing the outcomes of the retreat to address challenges in the electricity sector.
He also regretted the recent power grid collapse, assuring that immediate action was taken to restore functionality and that it was not due to strategic faults in the grid.