The Nigerian Electricity Regulatory Commission (NERC) has issued new permits to several companies, including Golden Penny Power Limited, MTN Communications Nigeria Limited, Havenhill Synergy, and others for mini-grid electricity generation, as part of efforts to boost power supply across the country.
According to NERC’s report for the first quarter of the year, nine new off-grid generation licenses were issued with a total capacity of 109.69 megawatts and three new trading licences.
According to the report, Golden Penny Power Limited got a licence to build six off-grid gas plants in Lagos, Oyo, Ogun, and Cross River states, with a total capacity of 100MW.
Additionally, MTN was granted a permit to build four captive generation plants in Lagos State with a total capacity of 15.94MW.
In line with these developments, NERC issued permits to several other companies for captive power generation. These companies include SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited.
As explained, Captive power generation permits are issued to entities intending to generate power exclusively for their own consumption, rather than for sale to third parties. NERC’s report revealed that in Q1 2024, a total of nine such permits were issued, amounting to a nameplate capacity of 52.57MW.
Further advancing the country’s renewable energy agenda, NERC granted mini-grid licences to companies like Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, and DMD Electric Limited.
The Electricity Act 2023 permits NERC to award mini-grid concessions to renewable energy companies, allowing them to generate and distribute electricity within specific geographical locations. In the first quarter of 2024, NERC issued three mini-grid permits and two registration certificates for systems with distribution capacities below 100 kilowatts (kW).
Additionally, the commission certified six Meter Service Providers during this period, including four meter installers and two meter manufacturers. These certifications are crucial for ensuring the effective installation, maintenance, and replacement of electric energy meters across the country.
In a regulatory update, NERC issued 36 new orders in Q1 2024, covering areas such as customer eligibility regulations, multi-year tariff orders for distribution companies, and performance improvement plans for the Transmission Company of Nigeria.
These orders are designed to guide the activities of licensed entities within the sector.
