MTN, Other Firms Get Permits to Generate Electricity in Nigeria
The Nigerian Electricity Regulatory Commission (NERC) has issued permits to several companies, including Golden Penny Power Limited, MTN Communications Nigeria Limited, and Havenhill Synergy, allowing them to generate electricity through mini grids.
New Electricity Licenses in 2024
NERC issued nine new off-grid generation licenses in the first quarter of 2024, with a total capacity of 109.69 megawatts. It also granted three new trading licenses.Golden Penny Power Limited was licensed to build six off-grid gas plants in Lagos, Oyo, Ogun, and Cross River states, with a total capacity of 100 megawatts. MTN received permits to construct four captive generation plants in Lagos with a combined capacity of 15.94 megawatts. Other companies, such as SweetCo Foods Limited, African Steel Mills Nigeria Limited, and West African Ceramics Limited, were also allowed to generate power for their own use.
Captive Power Permits Explained
Captive power permits are given to companies that generate electricity for their own needs, not for sale. In the first quarter of 2024, NERC issued nine captive power generation permits with a total capacity of 52.57 megawatts.
NERC is committed to expanding electricity generation through innovative solutions like mini-grids and captive power systems, ensuring that more companies can generate power to meet their own needs while improving energy access across Nigeria.
Mini-Grid Development Encouraged
NERC is pushing for more renewable energy by granting mini grid permits and certificates to companies. These mini grids are small, localized power systems. The commission approved three mini grid permits and two registration certificates in early 2024. A mini-grid permit allows developers to build and run systems that generate up to 1 megawatt of electricity, while a registration certificate is for systems with less than 100 kilowatts of capacity. NERC also certified six Meter Service Providers during this period. These include four-meter installers and two-meter manufacturers. Certified companies include Genobet Limited, Mojec Meter Asset Management, and Smart Meters Company Limited. In early 2024, NERC issued one regulation and 36 new orders to guide the activities of electricity companies. These orders cover areas such as tariff adjustments, customer performance plans, and compliance with estimated billing regulations. Overall, NERC is working to improve electricity generation, especially through mini-grids and captive power systems, while regulating the industry with new rules and orders.
In conclusion, NERC’s recent permits and licenses for mini-grid and captive power generation mark a significant step towards improving electricity access in Nigeria. By empowering companies like MTN and Golden Penny Power Limited to generate their own power, the commission is fostering innovation and promoting the use of renewable energy. These efforts are crucial for addressing the country’s power challenges and ensuring a more reliable energy future.
