GenCos, NERC differ over enforcement of national grid code

The electricity Generation Companies (GenCos) have condemned moves by the Nigerian Electricity Regulatory Commission (NERC) to compel them to install Free Governor Control (FGC) on the national grid. Daily Trust reports that the FGC is a governance code to control the electricity frequency on the grid which helps to regulate the flow of electricity during […]

The electricity Generation Companies (GenCos) have condemned moves by the Nigerian Electricity Regulatory Commission (NERC) to compel them to install Free Governor Control (FGC) on the national grid.

Daily Trust reports that the FGC is a governance code to control the electricity frequency on the grid which helps to regulate the flow of electricity during peak and low demand hours to ensure stability on the grid.

The highest frequency adopted in Nigeria is 50 Hertz (Hz) and operating below it indicates that the demand is below supply which can trigger grid collapse and disturbance.

To bring parity, load shedding is conducted and customers disconnected.

To bring sanity to the grid occasioned by the frequent grid collapse, NERC had during the weekend issued an order to penalise GenCos that failed to adhere to the FGC by November 2025.

The order signed by NERC’s Vice Chairman Musiliu Oseni and Commissioner, Legal, Licensing and Compliance, Dafe Akpeneye, said the order seeks to establish a structured framework for enhancing power generation reliability and stability of Nigeria’s power grid by ensuring strict compliance to operational frequency limits, implementing transparent monitoring mechanisms and penalties for violations of the Grid Code.

It added that the system requires all generating units to be fitted with fast-acting FGC that is capable of regulating turbine speed and adjusting power output based on frequency deviation exigencies i.e. primary control.

“The FGC shall be sufficiently damped for both isolated and interconnected operation modes. The FGC and any other superimposed control loop (load control, gas turbine temperature limiting control, etc.) shall contribute to the primary control to maintain the unit within the generating unit’s capability limits. Furthermore, the primary control characteristics shall be maintained under all operational conditions.

Where a generating unit becomes isolated from the system but is still available to supply demand, the generating unit must be able to provide primary control to maintain frequency and voltage.”

It urged all grid connected GenCos to install a fast-acting FGC in all generating units and the FGC shall be operable at all times by 30 November 2025.

“GenCos shall at all times activate and operate the FGC in real-time without any time delays and are mandated to procure and supply a Grade Level 5 metering system with loT-based monitoring capabilities for each generating unit and communicate readiness for installation to the NISO by 31 October 2025.”

It said the Nigerian Independent System Operator (NISO) will install and integrate all lot metering system provided by the GenCos within 20 days of receiving notification of readiness for meter installation from each GenCo.

It said any GenCo that fails to comply with the provisions of sections 12.6.2 and 15.8.3 of the Grid Code on the integration and activation of FGC on all generating units by 30 November 2025 shall be liable to a penalty of a prorated 10% of the invoice associated with the defaulting generating unit for the duration during which it was not operated with its FGC activated, that is, FGC non-compliant.

 

 

 

“Where a generating unit records 90 consecutive days of FGC non-compliance, the affected generating unit shall be disconnected from the grid. Reconnection shall only occur after NISO has certified the unit as fully compliant with the requirements of the Grid Code.”

 

 

 

Reacting to the order, the CEO of Association of Power Generating Companies (APGC), Dr Joy Ogaji, said the compulsion of the GenCos to maintain free governor control bears huge financial implications to the companies considering the funds involved in increased maintenance costs.

 

 

 

She said Free Governor Control is important, but it cannot cure frequency incursions on its own because Nigeria’s grid problems go beyond generation response.

 

 

 

“Weak infrastructure, poor system planning, sudden demand changes, and lack of ancillary services all contribute to instability, meaning FGC must work alongside broader reforms to deliver real stability,” she added.

 

 

 

While stating that the order will lead to the reduction of plants electricity generation, she said in global electricity market practice, compelling a generating station to reduce its generation to maintain the system grid attracts financial costs.

 

 

 

“In other words, any available capacity that has been declared but is not dispatched falls under the deemed capacity regime. For the GenCos, the absence of the spinning reserves has not been in their best interest.

 

 

 

The instability of the grid has forced the GenCos machinery to perform below the designed capacity and this has translated into huge financial implications especially in the light of the cost of generating the electricity that is not fully utilised.”

 

 

 

She said GenCos’ plants are at risk, not just from pumps and blowers operating at varying slip, but also from exciter current variations as `Automatic Voltage Regulators (AVRs) try to hold generated voltage constant at varying speed.

 

 

 

“In the limit, generating units could trip on under- (or over-) speed, leading to cascading loss of supply and system collapse. System is vulnerable to the loss of even the smallest generating unit. Again, especially in the case of the thermal GenCos, operating a generating unit below its capacity requires higher gas consumption which is not factored into the GenCos tariff.”