The Nigerian Electricity Regulatory Commission (NERC) has granted permits to Golden Penny Power Limited, MTN Communications Nigeria Limited, Havenhill Synergy, and others for mini-grid electricity generation.
In the first quarter of 2024, NERC issued nine new off-grid generation licenses with a total capacity of 109.69 megawatts and three new trading licenses. According to the commission, Golden Penny Power Limited received a license to establish six off-grid gas plants in Lagos, Oyo, Ogun, and Cross River states, with a combined capacity of 100MW. MTN was authorized to build four captive generation plants across Lagos State, with a total capacity of 15.94MW.
Additionally, SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited also received permits for captive power generation.
NERC explained that captive power generation permits are for entities intending to operate power plants for their own use rather than for resale. The commission issued nine such permits in Q1 2024, totaling 52.57MW in capacity.
Other 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, all based in Lagos State.
Under Section 165(1)(m) of the Electricity Act 2023, NERC can award mini-grid concessions to renewable energy firms to serve specific areas, with the obligation to provide service upon request. The commission continues to promote renewable energy by issuing permits and registration certificates for mini-grid development.
Permits are issued to mini-grid developers for projects with distribution capacities above 100 kilowatts and generation capacities up to 1MW, while registration certificates are for systems with distribution capacities below 100kW. In Q1 2024, NERC issued three mini-grid permits and two registration certificates.
During this period, NERC also certified six Meter Service Providers, including four meter installers and two meter manufacturers. The certified entities are Genobet Limited (installer), Mojec Meter Asset Management (installer), Epagad International Services Limited (installer), Abdulrahman Ahmadu Zubairu (installer), Smart Meters Company Limited (manufacturer), and Crestflow Energy Limited (manufacturer).
Additionally, NERC issued one regulation and 36 new Orders in Q1 2024, including regulations on eligible customers, multi-year tariff orders for distribution and transmission companies, and performance improvement plans.
