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The Future of TCN: Ensuring Professional Management of and Investment in the Transmission Network. Presented by Engr. A.S.A. Bada Senior Special Assistant.

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Presentation on theme: "The Future of TCN: Ensuring Professional Management of and Investment in the Transmission Network. Presented by Engr. A.S.A. Bada Senior Special Assistant."— Presentation transcript:

1 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 Presented by Engr. A.S.A. Bada Senior Special Assistant on Transmission to the President

2 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 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

3 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. 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

4 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 TCN 4

5 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

6 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 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

7 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. 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

8 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 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

9 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

10 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. 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

11 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. 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

12 1Capacity 330/132kV (MVA) 6,894 2Capacity 132/33kV (MVA) 8,882 3Number of 330kV Substations 28 4Number of 132kV Substations 119 5Total Number of 330kV circuits 60 6Total Number of 132kV circuits 153 7Length of 330kV lines (kM) 5,650 8Length of 132kV lines (kM) 6,687 9National Control Centre 1 10Supplementary National Control Centre 1 11Regional Control Centres 2

13 TCN Dutse Azare

14 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

15 Mitigation of Challenges and Areas Identified for Possible Private Sector Participation 15

16 16 TRANSMISSION GRID STRUCTURE WITH THE SUPER GRID IN PLACE SAPELE P/ST. Okitipupa Geregu 2015 : 2 nd Circuit Agip Zaria 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 geographical Map. See attached single diagram for Details. NOTE: PROPOSED SUPERGRID NETWORK

17 Thank You


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