Geregu Power Plans to Incorporate Renewable Energy into its Portfolio

  • Geregu Power, as outlined by Chairman Femi Otedola during the 12th Annual General Meeting, plans to integrate renewable energy sources into its power generation portfolio to align with global trends towards clean and efficient energy systems.
  • The company has invested $550 million in transforming its plant infrastructure, with an initial injection of 100 million Euros to increase the plant’s capacity to 435 MW.
  • Geregu Power’s Chief Executive Officer, Mr Akin Akinfemiwa, articulates a broader strategic vision to transition from a power generation company to a comprehensive energy solutions provider, focusing on establishing a sustainable power hub with approximately 1300MW capacity through acquisitions and technological advancements.

Geregu Power is planning to incorporate renewable energy into its portfolio. This is according to the company’s Chairman, Femi Otedola.

He said this during last week’s 12th Annual General Meeting (AGM). During the event, Otedola outlined Geregu Power’s strategic objectives, stating, “We aim to align our operations with global trends towards affordable, clean, and efficient energy systems. This involves integrating renewable energy sources into our power generation portfolio, aligning with our sustainability objectives and positioning us to capitalize on emerging market opportunities.”

He continued, “Our dedication to innovation and sustainability, coupled with our strategic initiatives, positions us favourably to overcome challenges and seize future opportunities.”

Otedola revealed, “To date, we have invested an additional 100 million Euros, bringing our total investment, including acquisitions, to 430 million Euros. We are planning further investments to increase the power station’s capacity to 1300 MW, pending resolution of issues with the federal government.”

Geregu Power disclosed that the company had made substantial investments totalling $550 million in transforming its plant infrastructure.

Doron Grupper, a board member at Geregu, explained, “Initially, we injected 100 million Euros to enhance the plant’s capacity to 435 MW following its acquisition. Additionally, Femi Otedola, the Chairman of Geregu Power, announced an N20 billion dividend payout, underscoring the company’s robust financial standing and commitment to maximizing shareholder value.

Otedola emphasized, “This dividend declaration signifies more than just profit distribution; it reflects our confidence in the company’s future and our dedication to sharing our success with our investors.”

He further stated, “Our financial performance demonstrates our resilience in a challenging economic climate and highlights our ongoing pursuit of growth and value creation.”

Otedola noted, “We witnessed significant growth in our financial indicators, driven by increased tariff components, energy rates, capacity charges, and operational efficiencies.”

Meanwhile, Geregu Power’s Chief Executive Officer, Mr Akin Akinfemiwa, outlined the company’s broader strategic vision: “Our aim is to transition from being solely a power generation company to becoming a comprehensive energy solutions provider.”

Akinfemiwa explained, “Our immediate and medium-term growth objectives are clear: establishing a sustainable power hub in the Ajaokuta axis with a combined capacity of approximately 1300MW through aggressive acquisitions and technological advancements to enhance capacity while reducing natural gas consumption.”

He highlighted, “New government policies, including the Electricity Act of 2023, are expected to create a more viable Nigerian Electricity Supply Industry, offering opportunities across the entire value chain.”

Akinfemiwa added, “This legislation empowers us to leverage our expertise in power generation and the transmission and distribution sectors, aligning with our vision of becoming a comprehensive energy solutions provider. We have already initiated engagements with key economic areas in various states towards this goal.”

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