MTN, Others Receives Permit To Generate Electricity
The Nigerian Electricity Regulatory Commission (NERC) has taken significant steps to enhance electricity generation in Nigeria by issuing new permits and licenses to different companies, including Golden Penny Power Limited, MTN Communications Nigeria Limited, and Havenhill Synergy, among others. These efforts are part of a broader initiative to promote off-grid and renewable energy solutions across the country.
In the first quarter of 2024, NERC granted nine new off-grid generation licenses with a combined gross capacity of 109.69 megawatts (MW) and issued three new trading licenses. Among the beneficiaries, Golden Penny Power Limited received a license to construct six off-grid gas plants in Lagos, Oyo, Ogun, and Cross River states, with a total generation capacity of 100MW. This development underscores the company’s commitment to contributing to Nigeria’s energy mix through independent power production.
MTN Communications Nigeria Limited, a major telecommunications company, was also awarded a permit to build four captive generation plants across Lagos State, with a combined capacity of 15.94MW. These captive power generation permits are designed for entities that generate electricity solely for their consumption, rather than for sale to third parties. In total, NERC issued nine captive power generation permits during the first quarter of 2024, amounting to a total nameplate capacity of 52.57MW. Other companies that received permits for captive power generation include SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited.
NERC has also been actively supporting the development of mini-grid electricity solutions, which are crucial for providing power to underserved and remote areas. The commission has continued to issue permits and registration certificates for mini-grid development, a move aligned with the provisions of the Electricity Act 2023. According to Section 165(1)(m) of the Act, the commission can award mini-grid concessions to renewable energy companies, allowing them to serve specific geographical locations with the obligation to meet customer demands.
In Q1 2024, NERC issued three mini-grid permits and two registration certificates, enabling companies like Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, and DMD Electric Limited to develop and operate mini-grid systems. These mini-grids are essential for improving access to electricity in areas not adequately served by the national grid.
Additionally, NERC certified six Meter Service Providers during this period, including four-meter installers and two-meter manufacturers. These certifications are part of the commission’s efforts to ensure that electric energy meters and metering systems are accurately installed and maintained across the country. Certified installers include Genobet Limited, Mojec Meter Asset Management, Epagad International Services Limited, and Abdulrahman Ahmadu Zubairu, while Smart Meters Company Limited and Crestflow Energy Limited were certified as manufacturers.
To further regulate and guide the activities of electricity licensees, NERC issued one regulation and 36 new orders in the first quarter of 2024. These include the Eligible Customer Regulations 2024, various Multi-Year Tariff Orders (MYTO) for Distribution Companies and the Transmission Company of Nigeria, and orders addressing performance improvement plans and non-compliance issues.
NERC’s actions during the first quarter of 2024 reflect its ongoing commitment to expanding Nigeria’s electricity generation capacity, particularly through off-grid and renewable energy solutions. The commission’s efforts are aimed at enhancing energy access, reliability, and sustainability across the country, which are critical for supporting Nigeria’s economic development and improving the quality of life for its citizens.
