The Nigerian Electricity Regulatory Commission (NERC) has granted permits to several companies, including Golden Penny Power Limited, MTN Communications Nigeria Limited, and Havenhill Synergy, for generating electricity through mini-grid systems. According to NERC, a total of nine new off-grid generation licenses were issued in the first quarter of 2024, amounting to a gross capacity of 109.69 megawatts. Additionally, three new trading licenses were approved during this period.
A report from the commission highlights that Golden Penny Power Limited secured a license to establish six off-grid gas plants across Lagos, Oyo, Ogun, and Cross River states, totaling 100 megawatts in capacity. Furthermore, MTN received a permit to construct four captive generation plants within Lagos State, with a combined capacity of 15.94 megawatts. In addition to MTN, other companies such as SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited have been authorized to generate captive power.
Captive power generation permits are specifically given to entities intending to own and maintain power plants solely for their consumption, not for sale to third parties. In the first quarter of 2024, NERC issued nine such permits with a total nameplate capacity of 52.57 megawatts.
Our sources reveal that other companies that obtained licenses for mini-grid systems include Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, and DMD Electric Limited in Lagos State. Section 165(1)(m) of the Electricity Act 2023 enables NERC to grant mini-grid licenses to renewable energy firms to serve specific geographical locations. This section outlines the amount of electricity to be generated and distributed within a site and obligates companies to provide service to requesting customers.
The commission continues to promote renewable energy development by granting permits and registration certificates for mini-grid projects. A mini-grid developer can receive a permit for constructing, operating, and maintaining mini-grids with distribution capacities above 100 kilowatts and generation capacities up to 1 megawatt. For smaller systems with distribution capacities below 100 kilowatts, registration certificates are issued instead. In the first quarter of 2024, NERC issued three mini-grid permits and two registration certificates following a successful evaluation process.
During the same period, NERC certified six Meter Service Providers, which included four meter installers and two meter manufacturers. A Meter Service Provider is certified by NERC to manufacture, supply, install, or manage electric energy meters and related systems. Meanwhile, a Meter Asset Provider is an entity permitted by NERC to offer metering services, such as meter financing, procurement, installation, maintenance, and replacement.
The newly certified meter service providers include Genobet Limited, Mojec Meter Asset Management, Epagad International Services Limited, Abdulrahman Ahmadu Zubairu, Smart Meters Company Limited, and Crestflow Energy Limited. Additionally, NERC issued one regulation and 36 new orders during the first quarter of 2024. These include regulations like NERC–R–001–2024, which outlines Eligible Customer Regulations, and various orders pertaining to tariffs and performance improvement plans for distribution and transmission companies.
The commission also introduced orders to address non-compliance with the capping of estimated bills by distribution companies from January to September 2023. These and other regulatory measures are aimed at guiding the operations of licensees in the sector.
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