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 mini-grid electricity generation.
NERC announced that it issued nine new off-grid generation licenses in the first quarter of 2024, with a combined capacity of 109.69 megawatts. Additionally, three new trading licenses were issued during the same period.
According to a NERC report, Golden Penny Power Limited has been licensed to build six off-grid gas plants across Lagos, Oyo, Ogun, and Cross River states, with a total capacity of 100MW. MTN was also granted permission to construct four captive generation plants in Lagos State, with a total capacity of 15.94MW.
Other companies, including SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited, were also granted permits for captive power generation.
“Captive power generation permits are issued to entities that intend to own and maintain power plants for self-consumption and not for sale to third parties,” NERC explained. “In Q1 2024, the commission issued nine such permits with a total capacity of 52.57MW.”
The report further disclosed that other companies licensed for mini-grid operations 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 allows the commission to grant mini-grid concessions to renewable energy companies for specific geographical areas, indicating the aggregate electricity to be generated and distributed from a site with the obligation to serve customers on request.
The commission highlighted its ongoing efforts to promote renewable energy development by issuing permits and registration certificates for mini-grid projects. Permits are granted to mini-grid developers for systems with a distribution capacity above 100 kilowatts and generation capacity up to 1MW. Registration certificates are issued for systems with distribution capacities below 100kW.
“Following the satisfactory evaluation of mini-grid applications, the commission issued three mini-grid permits and two registration certificates in Q1 2024,” NERC stated.
During the review period, NERC also certified six Meter Service Providers, including four meter installers and two meter manufacturers. These certified entities include Genobet Limited, Mojec Meter Asset Management, Epagad International Services Limited, Abdulrahman Ahmadu Zubairu (all installers), Smart Meters Company Limited, and Crestflow Energy Limited (both manufacturers).
Additionally, NERC issued one regulation and 36 new orders in Q1 2024, including the Eligible Customer Regulations 2024, Multi-Year Tariff Order 2024 for Distribution Companies, and several orders guiding the operations of licensees.
These developments mark a significant step towards enhancing Nigeria’s power generation and distribution infrastructure, with an emphasis on renewable energy and captive power solutions.
