The Nigerian Electricity Regulatory Commission has granted new permits to companies, including Golden Penny Power Limited and MTN Communications Nigeria Limited, to expand mini-grid electricity generation nationwide.
These permits are part of NERC’s broader strategy to enhance energy access and support off-grid power solutions.
According to the PUNCH, In the first quarter of 2024, NERC issued nine off-grid generation licenses with a combined capacity of 109.69 megawatts and three new trading licenses.
Golden Penny Power Limited received a license to build six off-grid gas plants across Lagos, Oyo, Ogun, and Cross River states, totaling 100 megawatts in capacity.
MTN Communications Nigeria Limited was also permitted to establish four captive generation plants across Lagos State, with a total capacity of 15.94 megawatts.
NERC, in a recent report, said, “Captive power generation permits are issued to entities that aim to own and maintain power plants for generating power for consumption and not for sale to a third party.”
The commission noted that nine captive power generation permits were issued in the first quarter of 2024, with a total nameplate capacity of 52.57 megawatts.
Other companies that received permits to generate captive power include SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited.
NERC also granted licenses for mini-grid development to several companies, including Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, and Watts Exchange Limited. These mini-grid permits are part of NERC’s efforts to promote renewable energy and provide electricity to specific geographical areas.
“The commission has continued to encourage the development and utilization of renewable energy by issuing permits and registration certificates for mini-grid development,” NERC stated.
The Electricity Act of 2023 empowers the commission to award licenses for mini-grid concessions, allowing renewable energy companies to exclusively serve specific areas with the obligation to meet customer demand.
The commission added, “Following the satisfactory evaluation of mini-grid applications, the commission issued three mini-grid permits and two registration certificates in 2024/Q1.”
In addition to licensing power generation projects, NERC certified six Meter Service Providers during the first quarter of 2024, including four-meter installers and two-meter manufacturers.
“A Meter Service Provider is an entity certified by the commission as a manufacturer, supplier, vendor, or installer of electric energy meters and metering systems,” the commission explained.
The certified meter installers include Genobet Limited, Mojec Meter Asset Management, Epagad International Services Limited, and Abdulrahman Ahmadu Zubairu. Smart Meters Company Limited and Crestflow Energy Limited were certified as meter manufacturers.
NERC issued one regulation and 36 new orders in the first quarter of 2024, including the Eligible Customer Regulations, 2024, and updates to the Multi-Year Tariff Order (MYTO) for Distribution Companies and the Transmission Company of Nigeria.
“The commission issued 36 orders to guide the activities of licensees,” NERC stated.
Among these were the Order on the Regulatory Intervention in Kaduna Electricity Distribution Plc and an Order on the Performance Improvement Plan of the Transmission Company of Nigeria.
