The Nigerian Electricity Regulatory Commission (NERC) has granted permits to Golden Penny Power Limited, MTN Communications Nigeria Limited, Havenhill Synergy, and several other companies for the generation of electricity through mini-grid systems.
In the first quarter of 2024, NERC issued nine new off-grid generation licenses with a combined capacity of 109.69 megawatts and three new trading licenses.
According to the commission’s report, Golden Penny Power Limited was authorized to construct six off-grid gas plants in Lagos, Oyo, Ogun, and Cross River states, with a total generation capacity of 100MW.
MTN also received approval to build four captive generation plants across Lagos State with a combined capacity of 15.94MW.
Other companies granted captive power generation permits include SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited.
Captive power generation permits are issued to entities intending to generate electricity solely for their consumption and not for resale. In the first quarter of 2024, NERC granted nine such permits, totaling 52.57MW.
Additional companies licensed for mini-grid projects 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.
Under Section 165(1)(m) of the Electricity Act 2023, NERC is authorized to issue mini-grid concessions to renewable energy companies for serving specific geographic locations.
These concessions detail the aggregate electricity to be generated and distributed from a site, with an obligation to provide service to customers who request it.
NERC has been promoting the development and utilization of renewable energy by issuing permits and registration certificates for mini-grid projects.
Permits are provided for mini-grids with a distribution capacity above 100 kilowatts and generation capacity up to 1MW, while registration certificates are issued for mini-grids with a distribution capacity below 100kW.
In the first quarter of 2024, NERC issued three mini-grid permits and two registration certificates following the successful evaluation of applications.
During this period, NERC also certified six Meter Service Providers, including four meter installers and two meter manufacturers. These providers are certified to manufacture, supply, install, or manage electric energy meters and metering systems.
The certified companies 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).
In addition to these certifications, NERC issued one regulation and 36 new orders in the first quarter of 2024.
These include the Eligible Customer Regulations 2024, the Multi-Year Tariff Order 2024 for Distribution Companies, and various orders related to the operations and performance of the Transmission Company of Nigeria and the Kaduna Electricity Distribution Plc.
These regulatory actions are intended to guide the activities of licensees and ensure compliance with industry standards.
