The Nigerian Electricity Regulatory Commission has granted licenses to Golden Penny Power Limited, MTN Communications Nigeria Limited, Havenhill Synergy, and several other entities for the generation of electricity through mini-grids.

The NERC announced that it issued nine new off-grid generation licenses during the first quarter of 2024, amounting to a total capacity of 109.69 megawatts, along with three new trading licenses.

As per the commission's report, Golden Penny Power Limited received authorization to establish six off-grid gas plants located in Lagos, Oyo, Ogun, and Cross River states, with a combined capacity of 100 megawatts.

Additionally, MTN has been authorized to construct four captive generation plants in Lagos State, which will have a capacity of 15.94 megawatts.

In addition to MTN, other companies such as SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited have also been granted permission to generate captive power.

Captive power generation permits are granted to organizations that intend to own and operate power plants for their own energy consumption rather than for resale to external parties. In the first quarter of 2024, the commission issued nine such permits, collectively amounting to a nameplate capacity of 52.57MW.

Our correspondent has reported that other licensed entities engaged in mini-grid operations include Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, and DMD Electric Limited in Lagos State.

According to Section 165(1)(m) of the Electricity Act 2023, the commission is authorized to grant mini-grid concessions to renewable energy firms, allowing them to serve designated geographical areas while specifying the total electricity to be generated and distributed from a particular site, with a commitment to meet customer service requests.

In this context, the commission has actively promoted the advancement and use of renewable energy by issuing permits and registration certificates for mini-grid projects. A permit is provided to a mini-grid developer for the construction, operation, maintenance, and, where applicable, ownership of mini-grids with a distribution capacity exceeding 100 kilowatts and a generation capacity of up to 1MW.

The commission has also indicated that it issues registration certificates to mini-grid developers for systems with distribution capacities below 100kW. "After a thorough assessment of mini-grid applications, the commission granted three mini-grid permits and two registration certificates in the first quarter of 2024," stated the NERC.

During the review period, the NERC reported the certification of six Meter Service Providers, which included four meter installers and two meter manufacturers.

A Meter Service Provider is defined as an entity certified by the commission to manufacture, supply, sell, or install electric energy meters and/or metering systems.

The certified meter service providers include Genobet Limited, Mojec Meter Asset Management, Epagad International Services Limited, Abdulrahman Ahmadu Zubairu, Smart Meters Company Limited, and Crestflow Energy Limited, serving as installers and manufacturers.

Additionally, the commission announced the issuance of one regulation and 36 new orders in the first quarter of 2024. These include NERC–R–001–2024, which pertains to the Eligible Customer Regulations for 2024; NERC/2023/023 to NERC/2023/033, which covers the Multi-Year Tariff Order for Distribution Companies in 2024; and NERC/2023/034, which relates to the MYTO 2024 for the Transmission Company of Nigeria Plc.

Furthermore, the orders encompass NERC/2023/035, addressing the Performance Improvement Plan for the Transmission Company of Nigeria; NERC/2024/001, which concerns regulatory intervention in Kaduna Electricity Distribution Plc; and NERC/2024/004 to NERC/2024/014, which address noncompliance with the capping of estimated bills by Distribution Companies for the period from January to September 2023.

Lastly, NERC/2024/016 to NERC/2024/036 represent the February 2024 Supplementary Order to the Multi-Year Tariff Order for the Distribution Companies. Throughout the quarter, the commission issued a total of 36 orders to regulate the operations of licensees.