The technology group Wartsila has signed a long-term Optimised Maintenance agreement covering power plants in three locations owned by Paras Energy, a 100 percent privately-owned Nigerian energy provider. The aim of the agreement is to ensure the plants’ continued high levels of availability, reliability and efficiency, while providing important cost predictability for future budgeting purposes. The agreement was booked by Wartsila in the second quarter of 2021.
The plants covered by the five-year agreement are operated with Wartsila 34SG gas-fuelled engines producing a combined total output of approximately 132 MW. Based on an average connected capacity of some 6,5 kW for each Nigerian home, this will represent the annual consumption equivalent of close to 20,300 domestic households.
“We have worked successfully with Wartsila for twelve years, during which time we have developed a strong spirit of mutual respect and trust. Until now we have managed and maintained these plants ourselves, but as we grow and expand our operations we are convinced that Wartsila’s professional approach will provide the support needed as we develop our core business,” said Yashwant Kumar, Managing Director, Paras Energy & Natural Resources Ltd.
“This tailored agreement will strengthen our long-standing partnership with Paras Energy. It is another example of marrying our world-class expertise and experience with state-of-the art digital technology to create unparalleled customer value. We are excited and honoured to take this step with an energy thought leader like Paras Energy,” explained Björn Ullbro, Vice President, Africa & Europe, Wartsila Energy.
Paras Energy is a privately-owned independent energy supplier connected to Nigeria’s national grid. Availability of the generating assets is, therefore, a key necessity and was a notable factor in the decision to sign the Optimised Maintenance agreement with Wartsila. The agreement has been specifically tailored to meet the needs and growth ambitions of the customer.
In 2009 Paras Energy decided to benefit from the advantages offered by the Wartsila gas engines rather than using gas turbine technology, which was at the time standard in Nigeria. Today, this is well in line with the Nigerian Federal Government’s integrated energy mix targets. The Nigerian Sustainable Energy for All (SE4ALL) action agenda in the 30:30:30 vision document outlined a target of generating 30 GW of power by 2030, with 30 percent from renewable energy sources.
The key benefits of the Wartsila technology include flexibility and the ability to quickly adjust the load in response to supply fluctuations from renewable energy sources. Gas engine power plants can be sized to meet the requirements of different needs, such as those of manufacturing industries, cities, or local microgrids. Furthermore, the Wartsila solution features low water consumption, which is an important consideration in view of Nigeria’s long dry seasons.
Wartsila has had operations in Nigeria since 2006 and its presence in Nigeria remains strong. Today, the number of personnel employed is close to 90. The total installed capacity in the country is 667 MW, of which about 70 percent is under service agreements. In the African continent, Wartsila has an installed footprint exceeding 7000 MW.