NERC issues new off-grid licences for power generation

As MTN secures permit for four captive plants

Nigerian Electricity Regulatory Commission (NERC) has issued nine new off-grid licences with a gross capacity of 109.69MW of electricity generation. In addition to the off-grid licences, the commission issued nine captive power generation permits with a total nameplate capacity of 52.57MW to entities to own and maintain the plants for generating power for consumption and not for sale to third party.

The Commission in its first quarter 2024 report also issued three new trading licences to Watts Exchange Limited in Abuja, Centum Dopemu Energy Services Ltd in Ogun State and DMD Electric Limited in Lagos State.

According to the report, out of the nine new off-grid licenses, 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.

The other three entities with the new off-grid licences are Daybreak Power Solutions, to build an off-grid solar plant with a capacity of 2.19MW in Niger State; TIS Renewable Energy Limited to build an off-grid gas plant with a capacity of 6MW in Lagos State; and Auro Nigeria Private Limited, which got a licence to build an off-grid gas plant with a capacity of 1.50MW in Kaduna State.

Also, MTN Nigeria Communication Limited got a permit to build four captive power generation plants across Lagos with a total capacity of 15.94MW, while SweetCo Foods Limited in Oyo State with a capacity of 1.50 MW, African Steel Mills Nigeria Limited in Lagos State with a capacity of  20MW, West African Ceramics Limited in Kogi State  with a capacity of 10MW, Royal Engineered Stones Limited in Kogi State with a capacity of 4MW and Armilo Plastics Limited in Lagos State with a capacity of 1.13MW were permitted to generate captive power

According to Section 165(1)(m) of the Electricity Act (EA) 2023, the commission shall “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 obligation to serve customers.

The commission stated that it would continue to encourage the development and utilisation of renewable energy by issuing permits and registration certificates for mini-grid development.

The commission, in the same quarter, issued three mini-grid permits and two registration certificates, where Havenhill Synergy Limited, Osun State got the three permits with a total capacity of 282kW; while NXT Grid Nigeria Limited in Kaduna and Prince Albert Company Limited in Cross River State got the registration certificates.

“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 100kW and generation capacity up to 1MW. The commission also issues registration certificates to a mini-grid developer for one or more systems with distribution capacity below 100kW,” the commission stated.