Power Supply: MTN, Golden Penny, Others Get NERC Permits to Generate Electricity
“Permits are issued for mini-grid projects with a distribution capacity above 100 kilowatts and generation capacity up to 1MW“
The Nigerian Electricity Regulatory Commission (NERC) has issued permits to several companies for mini-grid electricity generation. In the first quarter of 2024, NERC issued nine new off-grid generation licenses with a total capacity of 109.69 megawatts, as well as three new trading licenses.
Golden Penny Power Limited received 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 granted a permit to build four captive generation plants in Lagos State with a capacity of 15.94MW.
Several other companies, including SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited, were also permitted to generate captive power.
In addition to these, other licensed companies for mini-grids include 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 is fulfilling its mandate under Section 165(1)(m) of the Electricity Act 2023 by encouraging the development and utilization of renewable energy through the issuance of permits and registration certificates for mini-grid development. Permits are issued for mini-grid projects with a distribution capacity above 100 kilowatts and generation capacity up to 1MW, while registration certificates are issued for projects with distribution capacity below 100kW.
“Following the satisfactory evaluation of mini-grid applications, the commission issued three mini-grid permits and two registration certificates in 2024/Q1,” the NERC stated.
During the period under review, NERC stated that it certified six Meter Service Providers, including four meter installers and two-meter manufacturers.
A Meter Service Provider is an entity certified by the commission as a manufacturer, supplier, vendor, or installer of electric energy meters and/or metering systems.
A Meter Asset Provider is an entity that is granted a permit by the commission to provide metering services with roles that may include meter financing, procurement, supply, installation, maintenance, and replacement.
The certified meter service providers are Genobet Limited (installer), Mojec Meter Asset Management (installer), Epagad International Services Limited (installer), Abdulrahman Ahmadu Zubairu (installer), Smart Meters Company Limited (manufacturer), and Crestflow Energy Limited (manufacturer).
The commission also said it issued one regulation and 36 new Orders in 2024/Q1. They include NERC–R–001–2024 — Eligible Customer Regulations, 2024; NERC/2023/023—NERC/2023/033 — Multi-Year Tariff Order 2024 for the Distribution Companies; and NERC/2023/034 — MYTO 2024 for the Transmission Company of Nigeria Plc.
Other are NERC/2023/035 — Order on Performance Improvement Plan of the Transmission Company of Nigeria; NERC/2024/001 — Order on the Regulatory Intervention in Kaduna Electricity Distribution Plc; NERC/2024/004 – NERC/2024/014 — Order on Noncompliance with Capping of Estimated Bill by DisCos for the period January – September 2023; and NERC/2024/016 – NERC/2024/036 — February 2024 Supplementary Order to the Multi-Year Tariff Order for the Discos.
During the quarter, the commission issued 36 orders to guide the activities of licensees.
