NERC Grants MTN and Others Permits for Mini-Grid and Captive Power Generation

The Nigerian Electricity Regulatory Commission (NERC) has granted permits to various companies, including Golden Penny Power Limited and MTN Communications Nigeria Limited, to generate electricity through mini-grids. In the first quarter of 2024, NERC issued nine new off-grid generation licenses with a combined capacity of 109.69 megawatts, along with three new trading licenses.

Golden Penny Power Limited received a license to construct six off-grid gas plants across Lagos, Oyo, Ogun, and Cross River states, with a total capacity of 100MW. Meanwhile, MTN Communications Nigeria Limited was granted approval to build four captive generation plants in Lagos State, with a total capacity of 15.94MW.

Other companies permitted to generate captive power include SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited. Captive power generation permits are issued to entities that generate electricity primarily for their own consumption, rather than for sale to third parties.

In addition to captive power permits, NERC also issued three mini-grid permits and two registration certificates during the quarter. These permits support the development of renewable energy, allowing companies to serve specific geographical areas with electricity generation and distribution capacities of up to 1MW. Registration certificates are provided for mini-grids with a distribution capacity below 100kW.

NERC also certified six Meter Service Providers during this period, including four meter installers and two meter manufacturers. These providers are authorized to supply, install, and maintain electric energy meters and metering systems.

Furthermore, NERC issued one regulation and 36 new orders in Q1 2024 to guide the operations of licensees, including updates to the Multi-Year Tariff Order (MYTO) and performance improvement plans for the Transmission Company of Nigeria.