The Nigerian Electricity Regulatory Commission (NERC) has granted permits to several entities, including Golden Penny Power Limited and MTN Communications Nigeria Limited, for mini-grid electricity generation.
In the first quarter of 2024, NERC issued nine new off-grid generation licenses with a combined capacity of 109.69 megawatts, as well as three new trading licenses.
Golden Penny Power Limited was authorized to develop six off-grid gas plants across Lagos, Oyo, Ogun, and Cross River states, totaling 100 MW. MTN received approval to construct four captive generation plants in Lagos State, with a total capacity of 15.94 MW.
Other companies permitted for captive power generation include SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited. Captive power permits are granted to entities that generate electricity for their own use rather than for sale to third parties. In Q1 2024, NERC issued nine such permits with a total capacity of 52.57 MW.
Additionally, the commission has licensed several firms for mini-grid development, including Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, and DMD Electric Limited Lagos State. Under Section 165(1)(m) of the Electricity Act 2023, NERC has been active in promoting renewable energy through mini-grid concessions and permits.
For mini-grid projects, developers are granted permits for systems with generation capacities up to 1 MW. During the reviewed period, NERC issued three mini-grid permits and two registration certificates.
NERC certified six Meter Service Providers—four meter installers and two manufacturers. Certified entities include Genobet Limited, Mojec Meter Asset Management, Epagad International Services Limited, Abdulrahman Ahmadu Zubairu (installers), Smart Meters Company Limited, and Crestflow Energy Limited (manufacturers).
NERC also issued one regulation and 36 new Orders in Q1 2024, covering various aspects of the electricity sector, including tariff orders and performance improvement plans for the Transmission Company of Nigeria
Overall, the first quarter of 2024 saw significant regulatory activity aimed at enhancing Nigeria’s electricity infrastructure and promoting sustainable energy practices.
The commission also said it issued one regulation and 36 new Orders in 2024/Q1. They include NERC–R–001–2024 — Eligible Customer Regulations, 2024; NERC/2023/023—NERC/2023/033 — Multi-Year Tariff Order 2024 for the Distribution Companies; and NERC/2023/034 — MYTO 2024 for the Transmission Company of Nigeria Plc.
Other are NERC/2023/035 — Order on Performance Improvement Plan of the Transmission Company of Nigeria; NERC/2024/001 — Order on the Regulatory Intervention in Kaduna Electricity Distribution Plc; NERC/2024/004 – NERC/2024/014 — Order on Noncompliance with Capping of Estimated Bill by DisCos for the period January – September 2023; and NERC/2024/016 – NERC/2024/036 — February 2024 Supplementary Order to the Multi-Year Tariff Order for the Discos.
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