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NERC Issues Permits for Mini-Grid Electricity Generation, Boosts Renewable Energy

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The Nigerian Electricity Regulatory Commission (NERC) has issued permits to nine companies, including Golden Penny Power Limited and MTN Communications Nigeria Limited, to generate electricity through mini-grids. The permits, issued in the first quarter of 2024, have a gross capacity of 109.69 megawatts and are expected to boost renewable energy in the country.

According to a report by NERC, Golden Penny Power Limited was granted a license to build six off-grid gas plants in Lagos, Oyo, Ogun, and Cross River states, with a total capacity of 100MW. MTN Communications Nigeria Limited was also permitted to build four captive generation plants across Lagos State, with a capacity of 15.94MW.

Other companies that received permits include SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited. These companies are allowed to generate captive power, which means they can own and maintain power plants for generating power for consumption and not for sale to a third party.

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NERC also issued permits to several companies for mini-grid development, including Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, and DMD Electric Limited Lagos State.

The commission said it has continued to encourage the development and utilization of renewable energy by issuing permits and registration certificates for mini-grid development. NERC also certified six Meter Service Providers, including four meter installers and two meter manufacturers, to ensure accurate metering and billing.

In addition, NERC issued one regulation and 36 new orders in the first quarter of 2024, including the Eligible Customer Regulations, 2024, and the Multi-Year Tariff Order 2024 for the Distribution Companies.

The issuance of these permits and orders is expected to boost the country’s renewable energy sector and improve electricity supply to consumers.

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