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Nigeria: Mainstream Energy Solution takes over $1.3 bn Zungeru Power Plant

January 26, 2024

 Mainstream Energy Solution assumed control of the $1.3 billion Zungeru Hydro Power Plant following a competitive bidding procedure in which it emerged victorious.

While giving journalists a tour of the facility, Usman Umar, Executive Director, Corporate Services of Mainstream, stated that the agreement fulfilled his company’s objective of keeping its leading position in the production of energy in the country.

The 700 MW capacity power plant sits in the Nigerian State’s historic village of Zungeru.

Regarding the concession’s effects, Umar stated that it would achieve Mainstream growth goals for the production of clean energy.

He said: “The Corporation decided to pursue a growth programme two or three years ago. Our goal was to expand. Growth can occur naturally or through acquisitions.

“We have the feeling of satisfaction that you derive from setting an objective and achieving it.”

According to the ED, his company is dedicated to running the newly constructed Zungeru factory, which was financed by a Chinese loan, as efficiently as possible in order to support the Nigerian economy.

Penstock Energy, a fully owned subsidiary of Mainstream Energy Solution Limited, received the concession of Zungeru Power project, the nation’s newest hydro power project.

It is fed by a sizable dam and has four units, with ten billion cubic metres of reservoir capacity.

“With the installation of Zungeru, hydropower has become the largest source of electricity in the country and with the worldwide shift towards renewable energy, more hydro power projects should be supported.”

Regarding the difficulty of transmitting electricity, Umar stated that Mainstream would keep assisting the federal government with its initiatives to fortify the national system.

He said that businesses of generation companies would suffer if power generators increased their energy output without the Transmission Company of Nigeria having the capacity to handle such power.

He expressed optimism that the deal with Siemens and the new pact with the Chinese would result in a significant increase in transmission capacity in the interests of stakeholders in the industry and consumers, in particular.

The Chief Technical Officer of Mainstream, Jose Villegas, revealed that with the latest addition, the company would be generating about 1,202 MW into the National Grid.

He added that two more units would be added to the current eight units of Kainji, bringing the total number to 10 in that plant.

Source: Energy Ghana