The Transmission grid is an integral part of the Electricity Transmission Network and the Transmission Company of Nigeria (TCN), one of the successor companies unbundled from the Power Holding Company Ltd is vested with the power to carry the responsibility of power transmission. The TCN is the only successor company in the electricity value chain still in government control. However, the company had a management contract with Manitoba Hydro International Limited, a Canadian utility firm which ended a year ago. TCN’s operations covers the whole country and administratively it is divided into eight Transmission Regions that contain various Work Centres. TCN’s core mandate broadly covers the operation and management of high voltage (330/132kV) transmission system assets, generation dispatch functions (system operations) and provision of open access transmission services on regulated tariff. The TCN, through the Market Operator, is also responsible for managing the electricity market settlement system based on a set of Market Rules.

The TCN has transmission capabilities of about 6200MW. Nigeria’s transmission infrastructure is made of approximately 6,680 km of 330kV lines, 7,780 km of 132kV lines, 330/132kV substations with installed transformation capacity of 10,504MVA and 132/33/11kV substations with installed transformation capacity of 11,660MVA. Average transmission loss (line losses) is less than 9 percent. In the last three years, TCN has been able to achieve significant improvements in its operations, system reliability and efficiency. For example, incidences of system collapse have drastically reduced from 42 system collapses in 2010 to about 28 system collapses recorded in 2016. The quality of power delivered has also improved as well. A total of 2,650 km of 330kV and 7,101 km of 132kV transmission lines and 2,850 MVA of 330/132kV and also 2,900 MVA of 132/33kV transformation capacity will be added to the network in the next two years going by project schedules of TCN. In addition, there are on-going reinforcements of existing 330kV and 132kV lines and substations to enable the efficient wheeling of more electricity across Nigeria. See the appendix for summary of on-going projects in TCN

S/N LINE CAPACITY KILOMETER

EXISTING LINES 1 330kV LINE 6,680km 2 132kV LINE 7,780km

ADDITIONAL AFTER ON-GOING PROJECTS 1 330kV LINE 2,650km 2 132kV LINE 7,101km

S/N TRANSFORMER CAPACITY MVA

EXISTING TRANSFORMER CAPACITY 1 330/132kV INSTALLED TRANSFORMER 10,504MVA 2 132/33/11kV INSTALLED TRANSFORMER 11,660MVA

ADDITIONAL AFTER ON-GOING PROJECTS 1 330/132kV INSTALLED TRANSFORMER 2,850MVA 2 132/33/11kV INSTALLED TRANSFORMER 2,900MVA

It is often been claimed that the existing transmission infrastructure and its operation is the weakest link in the electricity value chain which however, has been proven wrong with the available data provided in this paper.

Nevertheless, the following are some of the broad challenges facing an efficient TCN:

Radial lines with no redundancies(alternative lines); Obsolete substation equipment; limited transmission lines and Substations for future generation

increase; Inadequate coverage of transmission infrastructure, as well as weak

infrastructure to evacuate the expected 10,000mw from generation and serve DisCo load demand in future.

Inadequate funding for planned and on-going transmission projects and for TCN’s operations;

Lack of cost reflective transmission tariff; High incidences of vandalism; Community and Right of Way issues during project execution;

In summary, the challenges to TCN can be broadly categorized into two categories: 1. System and infrastructure challenges; 2. Funding and revenue challenges;

The primary sources of funding for TCN are from government appropriation, external financing sources and from transmission tariff. In the last three years, TCN has received significant external funding via a Eurobond issue by the Nigerian government and DFI funding from AfDB, World Bank etc. with credit support from the Federal Government (FG). Due to a non-cost reflective tariff, TCN is unable to generate enough revenues to meet its operational requirements. Even more pathetic is the fact that despite a non-cost reflective transmission tariff, TCN is owed significant sums for transmission services provided to date. Debts to TCN by the electricity market are well above N15 billion. It is worthy to note that TCN receives less than 30% of her wheeling charges from DISCOs.

Donor agencies With the aid of donor agencies and FGN budgetary allocation as mentioned above, TCN has embarked on a massive capital projects which are at various stages of completion to increase the transmission capacity from 6200mw to 10,000mw. Some of the projects are as stated below in the Appendix. Settlement of all verifiable debts by the market to TCN Settling the outstanding debts to TCN will release immediate funding in excess of N15 billion for TCN to complete a number of key transmission projects that are stranded due to funding constraints. The settlement of the debt will also allow TCN implement quick win projects, such as installing capacitors on lines which would drastically improve the quality of power supply and also increase the transmission capacity of the grid beyond 6200mW. Implementation of PPP and project financing structures to finance the construction of new transmission lines The PPP arrangement could be in the form of long-term concession of new transmission lines or the creation of transmission regions under a BOT arrangement between concessioners and the TCN.

Timely release of TCN Appropriations Government appropriation to TCN should be a first line on the appropriation budget to the TCN. Completion of NIPP transmission projects The bulk of transmission projects are being funded and implemented by the Niger Delta Power Holding Company Ltd (NDPHC). An example is the North South loop transmission line to bridge power evacuation to the north and enhance grid stability. Thus the ability of the NDPHC to complete these key transmission projects in a timely manner is vital to increase power evacuation and grid stability. Way leave matters TCN management is synergizing with the state governors with the view to resolving the pending way leave issues with the locals, thereby creating more corridors for enhanced power evacuation.

For the power sector to make progress, investments in transmission infrastructure must outpace investments in other segments of the value chain. With an annual investment requirement of US$1 billion for the next ten years, there is an urgent need to seek creative, private sector for funding of transmission projects and infrastructure using.

Bauchi Region =Construction of 2X60MVA 132/33kV substation at Kafanchan =Construction of 330kV DC line from Kaduna to Jos =Construction of 30MVA Transformer at Gombe T/S (On-going). =Construction of 330/132/33kV sub-station at Damaturu (On-going). =Construction of 330/132/33kV sub-station at Maiduguri (Suspended due to insurgency). =Installation of 1No. 132KV Circuit Breaker for the 15MVA 132/11KV Transformer at Maiduguri T/S =Rehabilitation of 132KV Makeri – Pankshin line =Construction of 132/33KV substation at Song,Mubi,Gombi and Gulak. =Re – Construction of the collapsed 330KV Tower No. 122 between Benishek and Maiduguri.

Benin Region =Construction of 132/33kV 60MVA substation by CONTINENTAL ENGINEERING (on-going) =Construction of 2Nos. 132kV line bay by NDDC (on-going) =Construction of a 2x330kV line bay by MBH (on-going) =Replacement of faulty 40MVA transformer with a new 60MVA at Okene TS Enugu Region =Installation of 60MVA 132/33kV Transformer and extension of 132/33kV switchyard bay in Nkalagu T/S by TSP CHQ =Construction of Nkalagu – Abakaliki 132kV DC lines 2 and 3 by NIPP =Installation of 1 X 150MVA 330/132kV Transformer and extension of 33/132/33kV switchyard bay in New Haven T/S by TSP CHQ =Installation of 60MVA 132/33kV Transformer and extension of 132/33kV switchyard bay in Ugwuaji T/S by NIPP =Construction of New Haven – Nsukka 132kV line by NIPP. =Installation of 100MVA 132/33kV Transformer and extension of 132/33kV switchyard bay in Onitsha T/S by TSP CHQ . =Construction of 330kV line bay extension in Onitsha T/S by TSP CHQ .

Kaduna Region =Installation of 30MVA 132/33kV Transformer at Zaria T/Sby the Region. =Extension of 330KV switch yard at Mando TS byTCN CHQ =Extension of 132KV and 33KV switch yard at Mando TS by PMU =Dualization of 330KV Jos line by TSP CHQ =Automation of 330KV and 132KV at Mando TS by PMU =Installation of 60 MVA 132/33 KV Power Transformer at Dan Agundi T.S by PMU =Installation of 60 MVA 132/33 KV Power Transformer at Katsina T.S by TSP =Construction of 1x40 MVA 132/33 KV Sub Station at Wudil in Kano by TSP =Construction of 2X40 MVA 132/33 KV Sub Station at Daura in Katsina by TSP =Construction of 2X40 MVA 132/33 KV Sub Station at Wawalambe in Kano by TSP =Construction of 1x40 MVA 132/33 KV Sub Station at Dutsin Ma in Katsina by TSP =Construction of 1x40 MVA 132/33 KV Sub Station at Kurfi in Katsina by TSP =Construction of 1x40 MVA 132/33 KV Sub Station at Malumfashi in Katsina by TSP =Construction of 1x40 MVA 132/33 KV Sub Station at Dan Batta in Kano by TSP =Construction of 2 x 150 MVA 330/132 KV and 2x60 MVA 132/33 KV Sub Station at in Katsina by TSP =Construction of 2x150 MVA 330/132 KV and 2 x 60 132/33 KV Sub Station at RiminZakara in Kano by World Bank

Kaduna Region cont. =Construction of 10 MW Wind Farm Generating Station at KwanarRimi in Katsina by TSP. =Construction of Kano – Kankia - Katsina 330 KV DC Lines Katsina – Daura 132 KV Line Katsina – Kankara – Malumfashi 132 KV Line Daura – Dan Batta 132 KV Line =Installation of new 60MVA 132/33kV transformer at Funtua T/S by the Region. =Installation of new 30MVA 132/33kV T1 transformer at Gusau T/S by the Region. Lagos Region =Rehabilitation of 330kv switchyard at akangba T/S. =Construction of 300Mva 330/132kv at akangba. =Construction of 300mva 330.132kv transformer at ikejawest T.S =Rehabilitation of 330/132kv switchyard by MBH at akangba TS =Construction of 100mva 132/33kv transformer at ogba TS. =Construction of 60mva 132/33kv transformer at ota. =Installation of 60mva 132/33kv transformer at aja TS.

Lagos Region cont. =Construction and installation of 300mva 330/132 and 100mva 132/33kv transformers at egbin TS =Construction and installation of 2x60mva TRF and 8n033kv feeders at odogunyan. =Construction of new substation with 2x60mva 132/33kv transformers at with 20km 132kv line to old Abeokuta TS – completed =Construction of new okearo/alausa.oworonsoki 132kv line. Oshogbo Region =Installation of 60MVA, 132/33kV transformer at Ife T/S is in progress.

Port-Harcourt Region =Installation of 300MVA, 330/132/33kV at Alaoji TS by Akay Engineering Ltd is ongoing. =Installation of 150MVA, 330/132/33KV Transformer at Afam T/S =Re-conductoring of 83km Afam – Alaoji 132KV lines 1 & 2. The reconductoring of these lines by Electrical Solutions has been completed. =Re-conductoring of 85.75km Aba – Itu 132KV line. =Removal of existing 14MVA, 11/132KV transformer and replacing same with 60MVA, power transformer rehabilitation of the station. =Replacement of entire protection system and rehabilitation of the Portharcourt Town 132/33kV Ts. =Replacement of 1x7.5MVA transformer with 1 x 60MVA transformer at Aba TS and rehabilitation of the sub-station by GIT Engineering Shiroro Region =Installation of combine CT & VT in 330KV Shiroro TS Switchyard by NSP GENCO. =Installation of 60MVA 132/33kV Transformer and extension of 132/33kV switchyard bay in Kontagora T/S by TSP CHQ. =Installation of 60MVA 132/33kV Transformer at Sokoto TS replacing 67T3 30MVA TSP CHQ.