- The Nigerian Electricity Regulatory Commission (NERC) has issued nine new off-grid generation licenses in the first quarter of 2024, with a total capacity of 109.69 megawatts, indicating a push towards decentralized power generation.
- NERC has also issued permits to companies like MTN, Golden Penny Power Limited, and Havenhill Synergy to build captive generation plants, promoting more localized and sustainable energy solutions.
- In addition to licensing, NERC issued 36 new Orders in the first quarter of 2024, including regulatory updates for the electricity market and the promotion of renewable energy, demonstrating its commitment to a more efficient and transparent energy sector in Nigeria.
The Nigerian Electricity Regulatory Commission (NERC) is spearheading a significant push towards decentralized power generation, issuing nine new off-grid generation licenses in the first quarter of 2024, bringing a total capacity of 109.69 megawatts.
This move reflects a growing trend towards mini-grid development, with companies like MTN, Golden Penny Power Limited, and Havenhill Synergy securing licenses to build captive generation plants across various states. These mini-grids will provide power to specific geographic locations and customers, promoting a more localized and sustainable energy approach.
NERC’s efforts extend beyond licensing, as they also issued 36 new Orders in the first quarter of 2024, including the NERC–R–001–2024 — Eligible Customer Regulations, 2024, and the Multi-Year Tariff Order 2024 for the Distribution Companies. These regulatory updates aim to guide the activities of licensees and ensure a more efficient and transparent electricity market.
With a focus on renewable energy and mini-grid development, NERC is leading the charge in diversifying Nigeria’s energy landscape and bringing power to previously underserved areas.
What you should know
The Nigerian Electricity Regulatory Commission (NERC) issues mini-grid licenses as part of its efforts to promote decentralized power generation and bring electricity to underserved areas in Nigeria. These licenses authorize companies to build, operate, maintain, and sometimes own mini-grid systems that provide power to specific geographical locations.
Mini-grid systems are off-grid power generation and distribution systems that operate independently of the national grid, typically using renewable energy sources like solar, wind, or biomass. They serve a defined area, offering a reliable and sustainable energy solution for communities, businesses, and industries.
NERC’s mini-grid licensing framework encourages the development and utilization of renewable energy, creating opportunities for investment in this sector and promoting energy independence. These licenses come with specific requirements and regulations, including limitations on distribution capacity and generation capacity, to ensure quality and safety standards.
By issuing these licenses, NERC aims to diversify Nigeria’s energy mix, improve electricity access, and support sustainable development.
