To fortify the nation’s energy sector, the Federal Government of Nigeria, acting through the Nigerian Electricity Regulatory Commission (NERC), has given the green light to 13 new licences. These licences cover a spectrum of activities, including off-grid and embedded power generation, independent electricity distribution, and electricity trading.
According to the report from the NERC for the third quarter of 2023, these licences were granted during this period, with the total electricity generation capacity allocated to the licensees reaching 40.9 megawatts.
The report highlights that five new off-grid generation licences were issued during the review period, capable of generating 8.81 megawatts. Additionally, one new licence for embedded generation, boasting a capacity of 5 megawatts, was also granted.
NERC clarified its role in overseeing various aspects of the Nigeria Electricity Supply Industry, encompassing electricity generation, transmission, distribution, trading, and system operations.
The report further states, “For activities that do not require licences based on the provisions of sections 65–68 of the Electricity Act 2023 but still require authorisation from the commission, such as off-grid captive power generation and mini-grid development, the commission issues permits to the operators following a review of the relevant applications.”
Detailing the spectrum of licences issued, the Commission stated, “One new licence for Independent Electricity Distribution Network, one new licence for trading, three off-grid generation licences, one embedded generation, and one IEDN licence.”
This move signals a significant stride towards enhancing the country’s power infrastructure and fostering a more robust and diversified electricity landscape.
