(Ecofin Agency) - The Afam VI power plant in the Niger Delta region of Nigeria, has seen its output drop by about 40% to 350Megawatts due to transmission challenges.

The plant has the capacity to generate 650MW of electricity but only generates at most 450MW due to lack of adequate capacity to evacuate the entire 650MW.

“The reliability of the existing infrastructure also needs improvement. For example, SPDC JV’s Afam VI power plant, which has the capacity to generate up to 650MW, only generates between 350-450Mw most of the time because the power transmission system is unable to evacuate the full output,” a document from the Shell Petroleum Development Company Limited (SPDC) revealed.

SPDC JV in the document highlights the need for a steady gas supply and payment of arrears owed to various power operators, amongst others.

Afam VI is the second largest contributor to the National grid, contributing about 17%. It is also the largest combined cycle power plant on the grid.

Anita Fatunji