Nigeria’s NERC Grants Licences for Mini-Grid Electricity Generation
The Nigerian Electricity Regulatory Commission (NERC) has issued a series of new licences for mini-grid electricity generation, signalling a significant push towards off-grid power solutions in the country. Among the recipients are Golden Penny Power Limited, MTN Communications Nigeria Limited, and Havenhill Synergy, each poised to contribute to Nigeria’s energy landscape with innovative projects.
In the first quarter of 2024, the NERC issued nine new off-grid generation licences, collectively boasting a gross capacity of 109.69 megawatts. Additionally, three new trading licences were granted during this period. The NERC’s report highlights Golden Penny Power Limited’s plans to construct six off-grid gas plants across Lagos, Oyo, Ogun, and Cross River states, with a combined capacity of 100MW.
MTN, a major player in telecommunications, secured permits for four captive generation plants across Lagos State, with a total capacity of 15.94MW. These permits are part of broader efforts to enable captive power generation, where companies generate electricity solely for their use rather than for sale. Alongside MTN, companies like SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited have also been granted captive power generation licences.
The commission has further promoted renewable energy development by issuing mini-grid permits and registration certificates to several companies, including Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, and DMD Electric Limited. These mini-grid licences allow the developers to operate and maintain power systems with a generation capacity up to 1MW, primarily focusing on renewable energy sources.
The regulatory body also certified six new Meter Service Providers during the same period, with roles ranging from meter installation to manufacturing. This move aims to bolster the efficiency and reliability of metering systems across the country, which is crucial for the accurate billing and monitoring of electricity consumption.
Moreover, NERC issued a total of 36 new Orders and one regulation in Q1 2024, encompassing a range of initiatives from customer regulations to tariff orders for both distribution and transmission companies.
This wave of licensing and regulatory actions underscores NERC’s commitment to expanding Nigeria’s electricity infrastructure, particularly in the off-grid and renewable sectors, as the nation continues its journey towards energy sufficiency.
