As part of its electricity deal with the government, Siemens will upgrade 105 power substations and build 70 new ones along with 35 power transformers. In addition, 3,765 distribution transformers will be installed, and 5,109 km distribution lines be built with a potential capacity of over 13,000 MW.
In June 2020, the government approved funding for the pre-engineering and concessionary financing works required the first part of Phase 1 of Siemens' plan to add 25 GW of transmission capacity by 2025. The first phase of the plan envisions 7 GW of capacity additions by 2021 and 11 GW by 2023; the remaining 7 GW should be installed between 2023 and 2025. The government and Siemens signed an agreement in July 2019.
Nigeria’s power grid consists of high voltage substations with a total (theoretical) capacity of 7.5 GW and over 20,000 km of transmission lines. Transmission wheeling capacity currently available stands around 4.5 GW. Transmission lines are poorly maintained and frequently vandalised, resulting in T&D losses of around 15% of electricity produced in 2019.
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