IBEDC Plans 200MW Power Boost Through Hydro Plant Rehabilitation

The Ibadan Electricity Distribution Company (IBEDC) has announced ambitious plans to increase electricity supply by 200 megawatts through a combination of direct purchases from generating companies and the rehabilitation of redundant hydroelectric plants in Oyo and Osun states.

Chief Tunde Afolabi, Chairman of the Board of Directors of IBEDC, disclosed the plans during a press briefing at the company's head office in Ibadan on Tuesday. The announcement comes as part of the strategic direction of the newly reconstituted board, which marks what Afolabi described as "a significant milestone in the company's corporate journey."

"We have identified redundant hydro plants around Osun and Oyo. We will put funds into them and bring them back to life to improve supply across our franchise," Afolabi said.

The embedded generation initiative represents a strategic shift toward diversifying IBEDC's power sources while leveraging existing infrastructure that has fallen into disuse. By rehabilitating these hydro plants, the distribution company aims to add reliable capacity to its network while reducing dependence on the national grid.

In addition to the hydro plant revival, IBEDC is pursuing direct power purchase agreements with generating companies to secure an additional 200 megawatts beyond its current allocation. This approach allows the distribution company to supplement its existing supply and improve reliability for customers across its franchise areas.

"We intend to increase supply by buying directly from generating companies. We are looking at adding about 200 megawatts in addition to what we currently receive," Afolabi explained.

The board reconstitution followed the resignation of three nominees from the Asset Management Corporation of Nigeria (AMCON). The new board comprises Chief Tunde Afolabi as Chairman; Mr Ayodeji Ariyo Gbeleyi (with Mr Michael I. Magaji as Alternate Director); Dr Taiwo Afolabi; Prof Oladapo Afolabi; Mr Tunde Fayinka; Mr Oluwaseyi Akinwale; and Mr Adeolu Ijose.

Afolabi said the emergence of a new core investor alongside the reconstituted board signals a renewed strategic direction focused on stability, continuity, and sustainable growth for the distribution company.

The planned capacity additions come as Nigeria continues to grapple with significant electricity supply deficits, with distribution companies frequently unable to meet demand from their customers. IBEDC's franchise area covers Oyo, Ogun, Osun, Kwara, and parts of Niger, Ekiti, and Kogi states, serving millions of residential and commercial customers.

Industry analysts view the dual approach of embedded generation and direct power purchases as a pragmatic strategy for distribution companies seeking to improve supply reliability. Embedded generation, in particular, offers advantages including reduced transmission losses and improved grid stability.

The success of the hydro plant rehabilitation project will depend on the condition of the facilities and the investment required to restore them to operational status. Hydroelectric plants, once rehabilitated, typically offer low operating costs and long operational lifespans compared to thermal generation alternatives.

IBEDC's announcement reflects broader trends in Nigeria's power sector, where distribution companies are increasingly exploring alternative supply arrangements to complement their grid allocations and meet customer expectations for improved service delivery.