Experts Forecast  $700/$800m Revenue, As Tinubu Launches Gwagwalada Independent Power Plant

Fawaz Adebisi

President Bola Tinubu on Friday,  launched the Gwagwalada Independent Power Plant Project by the Nigerian National Petroleum Company Limited, NNPCL.

Spanning over 547 hectares of land in Gwagwalada, Abuja, the power project is a 1.350MW combined cycle power plant with auxiliaries and a balance of plant.

Experts have projected that the power plant will yield an impressive annual revenue ranging between $700 million and $800 million during its initial decade of operation.

During the groundbreaking ceremony for the project’s 350MW first phase, President Tinubu emphasized that the endeavor aims to eliminate distribution challenges, paving the way for Nigeria’s industrialization.

The power plant will enhance electricity supply to households and businesses, while also creating employment opportunities for local communities and young professionals.

President Tinubu stated, “To achieve economic growth, we must overcome energy shortages. This project’s early initiation underscores our commitment to positive change.”

The GIPP project, a collaborative effort between NNPC, China Machinery and Engineering Corporation (CMEC), and General Electric (GE), will utilize gas from the Ajaokuta-Kaduna-Kano (AKK) pipeline.

Upon completion, the GIPP is projected to generate an annual revenue of $800 million.

President Tinubu urged NNPC to ensure timely completion of the project within the three-year timeframe.

The initiative arises from the necessity to bolster Nigeria’s power generation capacity. Gas supply will be facilitated by the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project, currently in advanced construction stages.

The power plant will consist of three powertrain blocks, each yielding 450MW. These blocks will feature General Electric GT13E2 gas turbine generators, heat recovery steam generators, steam turbine electric generators, air-cooling condensers, balance of plant equipment, and black start diesel generators.

Upon finalization, the project is anticipated to provide approximately 10.3 million Megawatt hours of electricity annually, supplied to the Nigerian Bulk Electricity Trading Plc (NBET).

The generated power will be distributed through Power Purchase Agreements with distribution companies and major off-takers. China Machinery Engineering Corporation will oversee the project’s construction through a turnkey Engineering, Procurement, and Construction contract.

The event was attended by prominent figures from both the private and public sectors, including Mele Kyari, Group Chief Executive Officer of NNPC Limited, and Gabriel Aduda, Permanent Secretary of the Ministry of Petroleum Resources, among others.

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