By Our Reporter
Mainstream Energy Solution Limited, a key high octane player in Nigeria’s energy sector with two major hydroelectric plants, according to report, has officially begun operations at Zungeru power plant, in Zungeru, Niger state.
The 700 megawatts, MW, capacity power plant, funded by a $1.3 billion loan from China, has now come under Mainstream’s subsidiary’s management – Penstock Energy Ltd.
Recall that the concession for the Zungeru plant was awarded to Mainstream Energy by Nigeria’s Bureau of Public Enterprises, BPE, in February 2023.
As part of the agreement, Mainstream Energy will pay the Nigerian government $70 million yearly for thirty years in exchange for operating the plant.
The Executive Director of Corporate Services of Mainstream, Mr. Usman Umar, said the agreement was in fulfillment of his company’s goal of maintaining its leadership position in the nation’s electricity generation, noting the real work begins in ensuring that the asset is managed according to international standards.
The Kainji and Jebba hydroelectric plants, managed by Mainstream Energy, collectively contribute 1,338 megawatts, constituting approximately 33% of Nigeria’s current 4,000-megawatt power generation capacity.
In a statement by the Chief Technical Officer of the company, Jose Villega, the new power plant would generate about 1,202MW to the national grid.
He said that the two additional units would be incorporated into the existing eight units at Kainji, raising the total number of units at the plant to 10.