The Nigerian Electricity Regulatory Commission (NERC) has authorized some companies within the country including MTN Communications Nigeria Limited, Havenhill Synergy, Golden Penny Power Limited, and others for mini-grid electricity generation.
A permit is issued to a mini-grid developer for the construction, operation, maintenance, and where applicable ownership of mini-grids with distribution capacity above 100 kilowatts and generation capacity up to 1MW.
Section 165(1)(m) of the Electricity Act 2023 permits the commission to award licence of mini-grid concessions to renewable energy companies to exclusively serve a specific geographical location indicating aggregate electricity to be generated and distributed from a site with the obligation to serve customers to request service.
A report by the Commission, indicates that 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.
According to NERC, nine new off-grid generation were issued licences in the first quarter of 2024 with a gross capacity of 109.69 megawatts and three new trading licences.
Relatedly, MTN got a permit to build four captive generation plants across Lagos State with 15.94MW capacity.
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SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited were also permitted to generate captive power.
“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 issued nine captive power generation permits in 2024/Q1 with a total nameplate capacity of 52.57MW.
It was also learned that other licensed companies for mini-grids are Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, DMD Electric Limited Lagos State.
Under this, the commission said it has continued to encourage the development and utilisation of renewable energy by issuing permits and registration certificates for mini-grid development.
The commission disclosed that it issues registration certificates to a mini-grid developer for one or more systems with distribution capacity below 100kW.
“Following the satisfactory evaluation of mini-grid applications, the commission issued three mini-grid permits and two registration certificates in 2024/Q1,” the NERC stated.
