IMO STATE ELECTRICITY POWER PROJECT:
Understanding the Dynamics
…..Building a Resilient Power Market Through Reform and Transition
Overview
Electricity is the backbone of industrialisation, competitiveness, and sustainable economic growth. Nigeria’s electricity sector has undergone a major structural transformation following the constitutional amendment that decentralised electricity governance and the enactment of the Electricity Act, 2023. These reforms empower states to independently regulate electricity generation, transmission, and distribution within their territories.
Under this framework, states are now able to: Establish and regulate state electricity markets.
License electricity generation and distribution companies. Develop embedded and off-grid power solutions. Partner with private investors and development finance institutions
Establishing Imo State Power Base
In Imo State, the governor, Distinguished Senator Hope Uzodimma, took a bold step, initiated and signed into law the Imo State Electricity Reform Law, a landmark push that established the Imo State Electricity Regulatory Commission [ISERC]. This came as the first of its kind in the Southeast region and presents a structured setup to license, regulate, and drive electricity distribution, including transmission and distribution.
Establishment of Orashi Electricity Company Limited
Relying on the Law Reform, the Imo State Electricity Regulatory Commission [ISERC] granted a license to Orashi Electricity Company Limited to generate, transmit, and distribute electricity in Imo State and enhance the Imo State power sector.
Orashi Electricity Company Limited (OECL) in Imo State is a partnership between the Imo State Government, led by the Governor, Distinguished Senator Hope Uzodimma, and the Madkour Group, an Egyptian energy firm, established to develop, generate, transmit, and distribute power in Imo State. The Imo State Government signed a Memorandum of Understanding (MoU) with Orashi Electricity Company Limited in 2024, allowing Madkour Group to bring in technical and financial expertise. The goal is to provide reliable power to all 27 local government areas in Imo State. The core role is electricity generation nd distribution in Imo State
Imo State is therefore legally empowered to establish Orashi Electricity Company Limited, make laws for electricity within the state, and eventually manage generation, transmission, and distribution.
Vision Transmitted Through Action
The Hope Uzodimma administration’s vision taps into untapped state resources like natural gas, water bodies, and renewable potential that have existed for years but remained underutilised. The Orashi Electricity Company Limited is therefore grounded in law and strategically significant for energy independence and development.
With significant natural gas endowments, Imo State has a strong resource foundation to support utility-scale and embedded power generation. Leveraging these resources through Orashi Electricity Company Limited creates a bankable pathway for reliable electricity supply, industrial growth, and private sector participation.
Recognising this reality, Imo State Government has taken decisive steps to reposition the state as an attractive destination for industrial investment through targeted power sector reforms.
The establishment of Orashi Electricity Company Limited represents a landmark intervention aimed at addressing long-standing electricity supply constraints, reducing dependence on the national grid, and creating a reliable power ecosystem capable of supporting industrial clusters, commercial hubs, and residential growth.
This initiative reflects the visionary leadership of Governor Hope Uzodimma, whose administration has prioritised electricity as a critical enabler of Industrial growth, SME development, Employment generation, and improved quality of life.
Crucially, Imo State’s power resources—particularly gas-related opportunities—have existed for decades. The distinguishing factor today is the political will and policy clarity driving their structured utilisation.
Why Imo Power Project
Like many states, Imo State faces challenges from the national grid, arising from Inadequate generation capacity nationwide, transmission bottlenecks, and frequent grid instability and system collapses.
These constraints limit the predictability and quality of power available to industries and businesses.
On the side of transmission infrastructure and constraints, electricity generated at national power stations is transmitted to Imo State by the Transmission Company of Nigeria (TCN) through high-voltage transmission lines and substations.
However, transmission infrastructure remains a critical bottleneck due to: Limited network expansion, ageing assets, right-of-way challenges, and technical and commercial losses.
These factors underscore the need for localised and embedded generation solutions, the reason for the establishment of Orashi Electricity Company Limited.
Orashi Electricity Company Limited is coming as a support and anchor of the “Light Up Imo” Project, a drive to the reality of Imo’s industrial vision.
Power Deliverables in Imo State
At the World Energy Day 2025 recently in Owerri, Imo State, with the theme- Empowering The Future; Sustainable Energy For All, organised by the Ministry of Power and Electrification in conjunction with the Ministry of Petroleum and Natural Gas Development, the Commissioner, Ministry of Power and Electrification, Engr. Nwabueze Oguchienti, FNSE, reiterated the current pursuit to accomplish a home-grown reality in providing a regular power supply in Imo.
There are ongoing projects, he said, that include the construction of a 15km 33kv overhead and the installation of a 15MVA, 33/1Kv injection substation in New Owerri, to serve as a pilot scheme for the overall network upgrade. This will serve to provide steady power supply in the area.
Major ongoing projects, he mentioned, include: Ongoing Owerri-Orlu 50km 132Kv transmission line, which will boost power supply to the entire Orlu zone, it is due for completion in early 2026. Others include the erection of 60MVA, 132.33KV Mobitra substation in Okigwe, installation of a 63MVA, 132/33KV Mobitra substation at FUTO, Federal University of Technology[FUTO] Owerri.
These are projections that are pushing into Imo State’s power landscape in support of the Light UP Imo project.
Strategic Role of Orashi Electricity Company Limited
Orashi Electricity Company Limited has been established to complement and progressively strengthen the electricity supply in Imo State, rather than disrupt existing systems abruptly.
Its core objectives include:
Developing embedded power generation within the state
Supporting industrial parks and economic clusters
Improving supply reliability and voltage stability
Reducing technical and commercial losses
For investors, Orashi Electricity Company represents a structured entry point into Imo State’s emerging electricity market.
Power Generation Strategy and Resource Advantage
Orashi Electricity Company is expected to prioritise embedded and decentralised generation, supplying power directly to distribution networks and large consumers within Imo State.
Benefits include:
Lower transmission losses
Faster project deployment timelines
Improved system resilience
Better alignment with industrial demand
Managing the Transition: Understanding Current Power Supply Disruptions
Major infrastructure reforms—particularly in the electricity sector—rarely occur without short-term adjustments. As Imo State advances the implementation of its electricity reform agenda and the operationalisation of Orashi Electricity Company Limited, it is important to place possible power supply disruptions within their proper context.
Reform in Progress, Not System Failure
If in the face of power disruptions arising from project implementations, from Orashi Electricity Company Limited technical flows to other structural and technical considerations, the situation should not be misconstrued as a failure of policy or capacity. Rather, it reflects a transition phase in which legacy systems are being restructured, new operational frameworks are being introduced, and infrastructure gaps are being addressed.
Electricity systems are complex networks. Any effort to modernise, decentralise, or integrate new generation sources inevitably involves: Network reconfiguration, load balancing adjustments, infrastructure upgrades, testing, and institutional realignment.
These processes can temporarily affect supply stability but are necessary to achieve long-term reliability.
Why Temporary Disruptions Are Unavoidable in Power Sector Reform
Legacy Infrastructure Constraints
Much of the existing transmission and distribution infrastructure was not originally designed to support embedded generation or decentralised power models. Integrating new power sources, therefore, requires technical recalibration, which may result in intermittent outages during implementation.
Grid and Distribution Rebalancing
As new generation capacity is introduced and supply routes are optimised, distribution networks must be rebalanced to prevent overloads, voltage instability, or equipment damage. Controlled disruptions are often preferable to uncontrolled system failures.
Institutional Transition
The gradual emergence of Orashi Electricity Company Limited alongside existing distribution structures requires coordination among multiple institutions. This transition phase prioritises system integrity, regulatory compliance, and consumer safety.
A Phased and Responsible Development Approach
Imo State Government has deliberately adopted a phased implementation strategy rather than a sudden overhaul of the power system. This approach: Minimises systemic risk, preserves service continuity, protects investors and consumers and allows lessons learned to inform subsequent phases
While this approach may involve short-term inconveniences, it significantly reduces the likelihood of long-term structural failure.
Commitment to Transparency and Continuous Improvement
A key strength of the Imo State Electricity Power Project is the commitment to transparent communication and adaptive management. Performance data, operational feedback, and stakeholder engagement are continuously informing decision-making.
This openness ensures that challenges are identified early, addressed systematically, and incorporated into improved planning and execution frameworks.
What Investors and Development Partners Should Note
For investors and development partners, temporary disruptions should be viewed as signals of active system development, rather than policy reversals. Globally, successful power sector reforms—particularly in emerging markets—have followed similar patterns of transition.
The critical indicators remain firmly positive: Strong political backing, clear legal authority, defined institutional roles, growing demand for reliable power, and long-term revenue certainty.
Building for the Long Term
Imo State’s electricity reform agenda is focused on durability, resilience, and scalability, not short-term optics. The goal is to build a power system capable of supporting decades of industrial and economic growth.
In this context, present challenges are temporary milestones in a longer development journey—necessary steps toward achieving a stable, investor-friendly, and industrially competitive electricity market in Imo State.
By JODike