NERC grants mini grid permits to MTN, Golden Penny Power, others

BY MOTOLANI OSENI

The Nigerian Electricity Regulatory Commission (NERC) has issued permits to MTN Communications Nigeria Limited, Golden Penny Power Limited, Havenhill Synergy, and other companies for mini-grid electricity generation.

This development is part of a broader push to enhance off-grid power solutions across the country.

In the first quarter of 2024, NERC granted nine new off-grid generation licenses with a combined capacity of 109.69 megawatts. Additionally, three new trading licenses were issued. Among the companies receiving permits, MTN was authorized to build four captive generation plants in Lagos State, with a total capacity of 15.94 megawatts.

Golden Penny Power Limited secured a license to construct six off-grid gas plants in Lagos, Oyo, Ogun, and Cross River states, with a cumulative capacity of 100 megawatts. Other companies, such as 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.

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Captive power generation permits allow entities to generate electricity solely for their own consumption rather than selling it to third parties. NERC reported that in the first quarter of 2024, it issued nine such permits with a total nameplate capacity of 52.57 megawatts.

In addition to captive power permits, NERC also awarded mini-grid licenses to several renewable energy companies, including Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, and DMD Electric Limited.

These mini-grid permits are part of an ongoing effort to promote renewable energy in Nigeria. Under Section 165(1)(m) of the Electricity Act 2023, NERC has the authority to grant mini-grid concessions to companies that generate and distribute electricity in specific geographical areas.

These permits allow developers to construct, operate, maintain, and, where applicable, own mini-grids with distribution capacities above 100 kilowatts and generation capacities up to 1 megawatt. For systems with distribution capacities below 100 kilowatts, NERC issues registration certificates.

In the first quarter of 2024, NERC issued three mini-grid permits and two registration certificates, continuing its support for the development and utilization of renewable energy in Nigeria.