The Nigerian Electricity Regulatory Commission (NERC) has issued new permits for mini-grid and captive electricity generation to several companies, including MTN Communications Nigeria Limited and Golden Penny Power Limited. This move aims to boost Nigeria’s power supply and encourage renewable energy adoption.
Key Highlights:
- Off-Grid Generation Licenses:
- Nine new licenses were issued in Q1 2024.
- Total gross capacity: 109.69 megawatts (MW)
- Three new trading licenses were granted.
- Major Recipients:
- Golden Penny Power Limited: Six off-grid gas plants (100 MW total)
- MTN Nigeria: Four captive generation plants (15.94 MW total)
- Other recipients: SweetCo Foods, African Steel Mills Nigeria, West African Ceramics, Royal Engineered Stones, and Armilo Plastics
- Mini-Grid Developments:
- Three mini-grid permits and two registration certificates were issued.
- Permits for projects with 100 kW–1 MW capacity
- Registration for systems below 100 kW capacity
- Meter Service Providers:
- Six providers were certified, including four installers and two manufacturers.
- Regulatory Updates:
- One new regulation was issued: Eligible Customer Regulations, 2024.
- 36 new orders were released, covering tariffs, performance improvement, and regulatory compliance.
The NERC’s actions align with the Electricity Act 2023, which empowers the commission to grant mini-grid concessions to renewable energy companies. This initiative aims to improve electricity access across Nigeria, particularly in underserved areas.
These developments showcase Nigeria’s commitment to diversifying its energy mix and addressing power supply challenges. The inclusion of major corporations like MTN and Golden Penny in electricity generation efforts highlights the growing role of private sector participation in the country’s energy landscape.
As Nigeria continues to grapple with power supply issues, these new permits and regulatory measures represent a significant step towards a more stable and sustainable electricity sector.