LAGOS, Jan 25 – Mainstream Energy Solution Ltd, a key player in Nigeria’s energy sector with two major hydroelectric plants, has officially initiated operations at a newly established facility in Zungeru, central Nigeria. The 700-megawatt plant, funded by a $1.3 billion loan from China, is now under the management of Mainstream Energy’s subsidiary, Penstock Energy Ltd.Thank you for reading this post, don't forget to subscribe!
The concession for the Zungeru plant was awarded to Mainstream Energy by Nigeria’s Bureau of Public Enterprises (BPE) in February last year. As part of the agreement, Mainstream Energy will pay the Nigerian government $70 million annually over a thirty-year period for the right to operate the facility.
Mainstream Energy’s CEO, Audu Lamu, emphasized the responsibility of managing the asset in accordance with international standards, marking the beginning of significant efforts in overseeing the newly operational plant.
China has been actively involved in Nigeria’s infrastructure development over the past decade, extending financial support through its development bank for projects ranging from rail and airports to power generation plants.
Mainstream Energy’s existing hydroelectric plants, Kainji and Jebba, collectively contribute 1,338 megawatts, constituting approximately 33% of Nigeria’s current 4,000-megawatt power generation capacity.
Despite this, the country faces a persistent challenge of power shortages, necessitating further expansion to meet the energy needs of households and businesses experiencing frequent blackouts.