MTN, Others Get NERC’s Permits To Generate Electricity

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

The move was part of the commission’s ongoing efforts to expand electricity access across the country.

In the first quarter of 2024, NERC issued nine off-grid generation licences with a combined capacity of 109.69 megawatts (MW) and three trading licences. Notably, Golden Penny Power Limited secured a licence to construct six off-grid gas plants across Lagos, Oyo, Ogun, and Cross River states, boasting a total capacity of 100MW.

MTN Communications Nigeria Limited also received a permit to establish four captive generation plants in Lagos State, with a combined capacity of 15.94MW. Other companies, including SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited, were similarly authorised to generate captive power.

“Captive power generation permits are issued to entities that aim to own and maintain power plants for generating power for consumption and not for sale to a third party,” a NERC official explained. “The commission issued nine captive power generation permits in the first quarter of 2024, with a total nameplate capacity of 52.57MW.”

In addition to the developments, several companies have been licensed to operate mini-grids. These 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.

Under Section 165(1)(m) of the Electricity Act 2023, NERC is empowered to award licenses for mini-grid concessions to renewable energy companies that serve specific geographical locations. These licenses mandate the generation and distribution of electricity from designated sites, with an obligation to serve customers who request service.

The commission emphasised its commitment to fostering renewable energy development. “We have continued to encourage the development and utilization of renewable energy by issuing permits and registration certificates for mini-grid development,” the NERC statement added. Permits are issued to mini-grid developers for systems with distribution capacities above 100 kilowatts and generation capacities up to 1MW, while registration certificates are granted for systems below 100kW.

Furthermore, NERC certified six new Meter Service Providers during the quarter, including four meter installers and two meter manufacturers. These providers include Genobet Limited, Mojec Meter Asset Management, Epagad International Services Limited, Abdulrahman Ahmadu Zubairu, Smart Meters Company Limited, and Crestflow Energy Limited.

A NERC spokesperson clarified the roles of the providers, saying: “A Meter Service Provider is an entity certified by the commission as a manufacturer, supplier, vendor, or installer of electric energy meters and metering systems.”

In its ongoing regulatory activities, NERC issued one new regulation and 36 orders in the first quarter of 2024. These include key orders such as the Multi-Year Tariff Order 2024 for Distribution Companies and the Performance Improvement Plan for the Transmission Company of Nigeria, among others.