Generator Contract and Transmission Investment Options in Nigeria: Cost and Security Implications

Contractual arrangements with generating plants in Nigeria have lead to improved power generation facilities, but also new constraints. It is important to select operational stances and future investments that provide flow pattern flexibility that continues to widen options for generating parties in the bulk electricity trading pool, and accommodate different unit commitment patterns. This paper confirms and quantifies that there are mild negative consequences for hourly cost and security due to take-or-pay contracts, using a security constrained optimal power flow. It then applies an optimal transmission expansion methodology to determine transmission asset investments may improve power system security in Nigeria, rather than reducing the total level of power delivered. Several candidate lines are proposed based on the intersection of optimal line choices for separate contingencies.