Mainstream Energy Solution Ltd, a major player in Nigeria’s energy sector, has initiated operations at the newly commissioned 700-megawatt hydroelectric plant in Zungeru, Nigeria.
Mainstream’s subsidiary, Penstock Energy Ltd, is overseeing the operations of the facility, which was constructed with a $1.3 billion loan from China, Reuters reports.
Mainstream Energy secured the concession for the project from Nigeria’s privatisation agency, the 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 three decades for the operation of the plant.
“This is where the real work starts in ensuring that the asset is managed in accordance with international standards,” Mainstream Energy CEO Audu Lamu, said in a statement on Thursday.
Mainstream Energy, known for running two of Nigeria’s largest hydroelectric plants, Kainji and Jebba, is a significant contributor to the country’s power generation, accounting for about 33% of the current 4,000-megawatt capacity.
The newly operational Zungeru hydroelectric plant is crucial in addressing Nigeria’s power deficit, as the nation faces frequent blackouts affecting millions of households and businesses.
The facility’s operation aligns with China’s active involvement in Nigeria’s infrastructure development over the past decade, including investments in railways, airports, and power generation projects.