Nigerian Electricity Commission Mandates 398MW of Embedded Generation to Boost Power Reliability
The Nigerian Electricity Regulatory Commission (NERC) has instructed electricity Distribution Companies (Discos) to procure at least 398MW of embedded generation capacity to bolster the reliability of the nation’s power supply. The directive, which applies to all 11 Discos across Nigeria, is seen as a key measure to enhance electricity delivery and mitigate ongoing supply challenges.
Embedded generation, often referred to as distributed generation, involves small-scale power plants connected directly to distribution networks rather than the national grid. This decentralised approach is intended to offer a more flexible and resilient power supply, especially in areas where the grid is underperforming.
The NERC’s mandate, issued in the September 2024 Supplementary Order to the Multi-Year Tariff Order 2024, compels Discos to source 10% of their 2024 load allocation from embedded generation. For example, Kano Electricity Distribution Company (KEDCO) must secure a minimum of 27MW of embedded generation, with half of this capacity—14MW—sourced from renewable energy, according to the order. This move is designed to ensure more stable service delivery under the Service-Based Tariff (SBT) regime.
NERC’s directive outlines specific embedded generation targets for each Disco:
Kano Disco: 27MW
Port Harcourt Disco: 28MW
Yola Disco: 11MW
Abuja Disco: 61MW
Jos Disco: 22MW
Ikeja Disco: 60MW
Ibadan Disco: 48MW
Eko Disco: 51MW
Enugu Disco: 31MW
Benin Disco: 33MW
Kaduna Disco: 26MW
This policy is part of wider efforts by NERC to tackle Nigeria’s persistent power shortages and improve electricity access for consumers. By mandating that a portion of this new generation capacity comes from renewable sources, the commission is also signalling its commitment to sustainability and the diversification of energy sources in the country.
With Discos now under pressure to comply, the directive could lead to significant changes in the structure and reliability of Nigeria’s electricity supply in the coming years.
