NERC Issues Licenses for Mini-Grid Electricity Generation: Major Companies Like MTN and Golden Penny Power Lead the Charge in Nigeria's Power Sector

NERC Issues Licenses for Mini-Grid Electricity Generation: Major Companies Like MTN and Golden Penny Power Lead the Charge in Nigeria's Power Sector

NERC Awards Off-Grid Generation Licenses in 2024

The Nigerian Electricity Regulatory Commission (NERC) has taken significant strides in boosting Nigeria's electricity generation capacity by issuing nine new off-grid generation licenses in the first quarter of 2024. These licenses have a combined capacity of 109.69 megawatts. Additionally, the commission granted three new trading licenses to support the expanding energy market.

Major Players in the Power Sector Secure Licenses

Among the notable recipients of these licenses, Golden Penny Power Limited was awarded the rights to construct six off-grid gas plants across Lagos, Oyo, Ogun, and Cross River states, with a total capacity of 100MW. MTN Communications Nigeria Limited also received permits to build four captive generation plants in Lagos State, which will contribute 15.94MW to the grid.

Other companies that received licenses 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 generation permits are specifically issued to entities that generate power for their own consumption rather than for sale to third parties.

Mini-Grid Concessions and Renewable Energy Focus

In a continued effort to promote renewable energy, NERC issued several mini-grid concessions under Section 165(1)(m) of the Electricity Act 2023. These concessions allow renewable energy companies to exclusively serve specific geographical areas with a commitment to generate and distribute electricity. During the first quarter of 2024, NERC granted three mini-grid permits and two registration certificates to developers for the construction and operation of mini-grids with generation capacities ranging from below 100kW to up to 1MW.

The companies that received these mini-grid licenses include 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. These initiatives are part of NERC's broader strategy to encourage the development and utilization of renewable energy across Nigeria.

Certification of Meter Service Providers

NERC also made significant progress in regulating and improving the metering systems in Nigeria. During the first quarter of 2024, the commission certified six Meter Service Providers, including four meter installers and two meter manufacturers. These providers are crucial in ensuring the accurate measurement and billing of electricity consumption across the country.

The certified meter installers include Genobet Limited, Mojec Meter Asset Management, Epagad International Services Limited, and Abdulrahman Ahmadu Zubairu. The certified meter manufacturers are Smart Meters Company Limited and Crestflow Energy Limited.

New Regulations and Orders Issued

In addition to issuing licenses and certifications, NERC introduced new regulations and orders to guide the activities of licensees in 2024. A total of 36 new orders and one regulation were issued during the first quarter. These include regulations like the Eligible Customer Regulations and the Multi-Year Tariff Order (MYTO) 2024 for both Distribution Companies and the Transmission Company of Nigeria Plc. Other significant orders addressed performance improvement plans and regulatory interventions in specific electricity distribution companies.

These measures by NERC are expected to enhance the efficiency and reliability of Nigeria’s power sector, ultimately benefiting both providers and consumers.