The Nigerian Electricity Regulatory Commission (NERC) has granted new permits to several companies, including MTN Communications Nigeria Limited, Golden Penny Power Limited, and Havenhill Synergy, allowing them to engage in mini-grid and captive electricity generation. This initiative marks a significant step in expanding Nigeria’s off-grid power generation capacity.
In the first quarter of 2024, NERC issued nine off-grid generation licenses totaling 109.69 megawatts (MW) and three new trading licenses. Among the notable recipients, Golden Penny Power Limited has been authorized to establish six off-grid gas plants across Lagos, Oyo, Ogun, and Cross River states, with a combined capacity of 100 MW. MTN received approval to construct four captive generation plants in Lagos State, with a total capacity of 15.94 MW.
The permits for captive power generation are intended for entities that produce power solely for their own use rather than for resale. In this quarter alone, NERC issued nine such permits, adding up to a total capacity of 52.57 MW.
Other companies awarded permits include SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited. These firms, along with MTN, are permitted to generate captive power to support their operations.
Additionally, several companies have received licenses for mini-grid developments. The newly licensed mini-grid developers are Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, and DMD Electric Limited.
The permits align with Section 165(1)(m) of the Electricity Act 2023, which authorizes NERC to grant mini-grid concessions to renewable energy companies for specific locations. These mini-grids are expected to cater to areas with limited access to the national grid, supporting local electricity needs with a generation capacity of up to 1 MW.
NERC also certified six Meter Service Providers this quarter, including both installers and manufacturers. The certified entities are Genobet Limited, Mojec Meter Asset Management, Epagad International Services Limited, Abdulrahman Ahmadu Zubairu, Smart Meters Company Limited, and Crestflow Energy Limited.
In addition to the permits and certifications, NERC issued 36 new orders and regulations, including updates to the Multi-Year Tariff Order (MYTO) for distribution and transmission companies, and specific orders on performance improvement and compliance.
This expansion in electricity generation capacity and regulatory oversight reflects Nigeria’s ongoing efforts to improve its power infrastructure and address the nation’s electricity needs.
