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    NERC gives MTN, others get permits to generate electricity

    Vincent OsuwoBy Vincent OsuwoAugust 19, 2024No Comments3 Mins Read
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    Electricity transmission towers during a planned power maintenance outage in Ogun State, Nigeria.
    Electricity transmission towers
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    The Nigerian Electricity Regulatory Commission (NERC) has granted permits to Golden Penny Power Limited, MTN Communications Nigeria Limited, Havenhill Synergy, and others to generate mini-grid electricity. 

    In the first quarter of 2024, the NERC issued nine new off-grid generation licenses with a gross capacity of 109.69 megawatts, as well as three new trade licenses.

    According to the commission’s report, Golden Penny Power Limited was granted a license to build six off-grid gas plants in Lagos, Oyo, Ogun, and Cross River states.

    The total capacity is 100 megawatts. MTN was also granted permission to build four captive-generating facilities with a combined capacity of 15.94 MW across Lagos State.

    Aside from MTN, SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited were given permission 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. The commission issued nine captive power generation permits in 2024/Q1 with a total nameplate capacity of 52.57 MW.

    According to our correspondent, other approved mini-grid firms in Lagos State include Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, and DMD Electric Limited.

    Section 165(1)(m) of the Electricity Act 2023 authorises the commission to grant mini-grid concession licenses to renewable energy companies to exclusively serve a specific geographical location, indicating aggregate electricity to be generated and distributed from a site, with the obligation to serve customers who request service.

    Under this, the commission stated that it has continued to promote the growth and use of renewable energy by giving permits and registration certificates for mini-grids.

    A permit is provided to a mini-grid developer for the building, operation, maintenance, and, where applicable, ownership of mini-grids with distribution capacity of more than 100 kilowatts and generation capacity of up to 1 MW.

    The NERC disclosed that it issues registration certificates to a mini-grid developer for one or more systems with distribution capacity below 100 kW.

    “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.

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

    A Meter Asset Provider is a firm that has been granted a permit by the commission to provide metering services, which may include meter finance, procurement, supply, installation, maintenance, and replacement.

    Certified meter service providers include 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 (maker).

    The NERC also stated that it issued one regulation and 36 new orders in 2024/Q1. They include NERC–R–001–2024—EEligible Customer Regulations, 2024; NERC/2023/023—NERC/2023/033—MMulti-Year Tariff Order 2024 for the Distribution Companies; and NERC/2023/034—MMYTO 2024 for the Transmission Company of Nigeria Plc.

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