New permits for mini-grid electricity generation have been awarded by the Nigerian Electricity Regulatory Commission (NERC) to several well-known businesses, including Havenhill Synergy, MTN Communications Nigeria Limited, and Golden Penny Power Limited.
The action was a component of the commission’s ongoing initiatives to increase national access to power.
NERC issued three trade licences and nine off-grid generation licences totalling 109.69 megawatts (MW) in the first quarter of 2024. Interestingly, Golden Penny Power Limited has a license to build six 100MW off-grid gas plants spread among the states of Lagos, Oyo, Ogun, and Cross River.
Additionally, MTN Communications Nigeria Limited was granted permission to construct four captive power plants with a total 15.94 MW of capacity in Lagos State. Similar authorizations to produce captive power were granted to SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited.
According to a NERC official, “entities that aspire to own and operate power plants for generating power for consumption and not for sale to a third party” are granted permits for the production of captive power. “In the first quarter of 2024, the commission issued nine captive power generation permits with a total nameplate capacity of 52.57MW.”
Apart from the advancements, several businesses have been granted licenses to manage mini-grids. Daybreak Power Solutions, Auro Nigeria Private Limited, TIS Renewable Energy Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd., and DMD Electric Limited Lagos State are a few of them.
The Electricity Act 2023, Section 165(1)(m), gives NERC the authority to provide licenses for mini-grid concessions to renewable energy providers that target particular regions. These permits require the production and delivery of energy from specific locations, along with a duty to accommodate service requests from clients.
The commission emphasized that it is dedicated to supporting the development of renewable energy. “By issuing permits and registration certificates for mini-grid development, we have continued to encourage the development and utilization of renewable energy,” the NERC statement stated. For systems above 100 kW in distribution and up to 1 MW in generation, mini-grid developers are granted permits; for systems below 100 kW, registration certificates are awarded.
In addition, four meter installers and two meter manufacturers were among the six new Meter Service Providers that NERC certified during the quarter. These suppliers include of Abdulrahman Ahmadu Zubairu, Epagad International Services Limited, Mojec Meter Asset Management, Genobet Limited, Smart Meters Company Limited, and Crestflow Energy Limited.
“A Meter Service Provider is an entity certified by the commission as a manufacturer, supplier, vendor, or installer of electric energy meters and metering systems,” explained a NERC representative, outlining the providers’ responsibilities.
In the first quarter of 2024, NERC issued 36 orders and one new regulation as part of its ongoing regulatory efforts. Among them are important directives like the Performance Improvement Plan for the Transmission Company of Nigeria and the Multi-Year Tariff Order 2024 for Distribution Companies.