Nigeria’s Power supply is seen improving across the country in the coming weeks as the rainy season approaches and the water level at the hydropower plants is expected to rise to boost generation.
According to projections by the Financial Derivatives Company (FDC), gas shortages could, however, constrain increased supply as gas fired thermal power plants account for approximately 70 percent of total power generation.
“The rainy season has commenced and we expect water constraints to decline significantly and a gradual pickup in hydropower. This is expected to boost power output in the coming weeks.
“However, gas shortages will remain the principal challenge as gas fired thermal power plants account for approximately 70 percent of total power generation,” the research and financial advisory firm stated.
It noted that with water constraints falling, an increase in hydropower generation would increase available power supply and reduce the demand for alternative energy like diesel or fuel-powered generators.
