In 2012, a consortium led by Transcorp Group won the bid for the acquisition of the 972 megawatts capacity Ughelli Power Plant; one of the six power generation companies being privatized by the Nigerian government at the time, kickstarting a future of transformation and improved efficiency in the power sector. Managing Director/CEO of Transcorp Power Chris Ezeafulukwe speaks glowingly of the achievements of Transcorp Power in a Twitter Spaces interview with Heirs Holdings, the Africa Propriety Investment Company with significant investments in Power, Hospitality, Energy, and Financial Services, among others.
“Transcorp Power is the most credible evidence that privatisation of the power sector was the right decision,” Ezeafulukwe enthused. “When Transcorp invested in the Ughelli Power Plant in 2013 it had a generation capacity of 160 MW of the total installed capacity of 972 MW.
“We did what is considered today the most phenomenal capacity recovery that has ever happened. We invested and took the generation capacity from 160MW to 680MW within 4 years. It’s phenomenal because the target that was set by the Federal Government was 670 MW within 5 years, but in approximately 4 years we surpassed that target,” Ezeafulukwe stressed.
Speaking further in the interview titled The Future of a Self-Sustaining Power Market, the Transcorp Power CEO broke down the Nigerian Power Value chain, explaining the features of a self-sustaining market. Ezeafulukwe zoomed in on two of these features; one is a cost-reflective tariff, ensuring that key operators in the value chain can price their services in a way that would ensure their sustainability in business. “We do not currently have that; however, we are inching towards it,” he said, adding that while operators stress the importance of cost-reflective tariffs, consumers need to also experience improvement of services as they pay more.
“Quality of service is another feature of a self-sustaining market,” the Transcorp Power CEO said.
According to Ezeafulukwe, the power sector as it is today, is not sustainable, as there is still so much government intervention. He painted the picture of a self-sustaining market, which he is positive has started to evolve; “a market where we have different sources of generation, efficient transmission, and distribution, a market where you have price competitiveness, a market that will fund itself”.
He stressed that the future, in the power market, is bright for those who see what is coming. “At Transcorp, we have gone beyond what we are looking at; what we are seeing is the evolution of a self-sustaining market that will live up to the expectations of different stakeholders.”
Nigeria needs a minimum of 20,000 MW for electricity sufficiency but currently produces about 4,500 – 5,000 MW. “There is an opportunity to fill the huge gap,” the Transcorp Power Managing Director/CEO said.
A subsidiary of Transcorp Group, a diversified conglomerate with investments in Power, Hospitality, and Gas, Transcorp Power is committed to improving lives and transforming Africa, in line with the purpose of the Transcorp Group.
Apart from being an important employer of labour in its area of operation, Transcorp Power is committed to giving back to the community, with its school one of the best in Delta State where its power plant is situated. The company also allows its host communities to nominate any developmental project they want and Transcorp funds it.
Together with TransAfam Power, another power generating company in the portfolio of Transcorp Group, Transcorp Power accounts for 15.5% of the total installed capacity in Nigeria.
