The Nigerian Electricity Regulatory Commission (NERC) has issued new permits to several companies, including Golden Penny Power Limited, MTN Communications Nigeria Limited, and Havenhill Synergy, for mini-grid electricity generation.
The commission announced that it granted nine off-grid generation licences in the first quarter of 2024, with a combined capacity of 109.69 megawatts (MW) and three trading licences.
Golden Penny Power Limited received approval to build six off-grid gas plants across Lagos, Oyo, Ogun, and Cross River states, with a total capacity of 100MW. MTN Nigeria also secured a permit for four captive generation plants in Lagos State, which will have a combined capacity of 15.94MW.
In addition to MTN, companies like SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited were permitted to generate captive power for their own use.
Captive power generation permits are specifically issued to entities that aim to generate electricity for their own consumption, not for sale to third parties.
In the first quarter of 2024, NERC issued nine such permits, totaling 52.57MW in capacity.
Other companies licensed for mini-grid development 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 in Lagos State.
The Electricity Act 2023 allows NERC to grant mini-grid concessions to renewable energy companies to serve specific geographic areas. The commission has been actively promoting renewable energy by issuing permits and registration certificates for mini-grid projects.
In the first quarter of 2024, NERC issued three mini-grid permits and two registration certificates, supporting the growth of decentralized power solutions in Nigeria.
Additionally, NERC certified six Meter Service Providers, including four meter installers and two meter manufacturers, ensuring the integrity and expansion of metering services across the country.
The commission also released one new regulation and 36 orders in the first quarter, aimed at guiding the activities of licensed entities and improving overall electricity service delivery in Nigeria.