Harnessing Hydropower Potential in Delta State, Nigeria: A Comprehensive Analysis of Prospects and Challenges

Independent Power Producers (IPPs); Decentralized Power Systems; Smart Metering; Aggregate Technical, Commercial and Collection Losses (ATC&C); Embedded Generation Policy.

Authors

  • Michael Ekpoh Delta State University Abraka
  • Smith O. Otuagoma Department of Electrical & Electronic Engineering, Delta State University, Abraka, Delta State, Nigeria
  • Ogheneakpobo J. Eyenubo Department of Electrical & Electronic Engineering, Delta State University, Abraka, Delta State, Nigeria
October 28, 2025
December 6, 2025

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Nigeria’s centralized electricity system continues to experience chronic shortfalls, unreliable supply, and high non-technical losses. Independent Power Producers (IPPs) have emerged as viable alternatives capable of delivering more reliable, localized power. This study examines the performance of a gas-fired IPP supplying Plantation City, Otokutu, Delta State, over a nine-month period from March to November 2023. Drawing on operational logs, billing data and prepaid metering records, we estimate generator uptime, billing efficiency, collection efficiency and Aggregate Technical, Commercial and Collection (ATC&C) losses. Results show that the IPP delivered approximately 390–410 MWh per month, maintained billing efficiency above 82%, and achieved collection efficiency of about 95%, resulting in fluctuating ATC&C losses between 17% and 23% with an average of approximately 20%. Compared to the national DisCo average losses of 35–40%, the IPP exhibits substantially improved performance. High uptime (>95%) and prepaid smart metering were central to reducing losses and ensuring financial sustainability. The findings demonstrate that properly structured IPPs can deliver more reliable and efficient electricity services, offering a blueprint for decentralized power expansion in Nigeria.