Otedola’s Geregu Power Gets Rivals as FG Issues 13 New Power Generation, Distribution Licenses
- The Nigerian Electricity Regulatory Commission (NERC) has issued 13 new licenses
- The commission said the new licenses were for power generation, distribution, and trading
- It said that one new license was for the Independent Electricity Distribution Network, one license for trading, three for off-grid generation, among others
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The Nigerian government, via the Nigerian Electricity Regulatory Commission (NERC), has issued 13 new licenses for generating off-grid and embedded power, independent electricity distribution, and electricity trading.
NERC said it issued the new licenses in Q3 2023 as the cumulative quantum of electricity to be generated by the new licensees was about 40.9 megawatts.
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Types of new licenses issued by NERC
The commission revealed that the five new off-grid generation licenses that would generate 8.81MW were issued during the period under review, as well as one new license for the embedded generation of 5MW.
Regarding other licenses, NERC said one new permit for the Independent Electricity Distribution Network, one for trading, three off-grid generation licenses, one for embedded generation, and one for IEDN.
The electricity regulator explained that the commission issues licenses for electricity generation, transmission, trading, and system operations in the Nigeria Electricity Supply Industry (NESI).
NERC said:
“For activities that do not require licenses based on the provisions of sections 65-68 of the Electricity Act 2023 but still require authorization 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.”
Reports say 86 million Nigerians lack electricity
Punch reports that Nigeria generates between 3.500MW and 5,000MW of electricity for its more than 200 million people, a development described as poor for the country.
In June 2023, about 86 million of Nigeria’s population was estimated to lack electricity as of 2021.
A report by the International Energy Agency, International Renewable Energy Agency, United Nations, and the World Health Organisation stated that the countries with the most significant number of people without electricity as of 2021 include Nigeria, DRC, and Ethiopia.
The issuance of licenses for electricity generation by NERC is a means to boost Nigeria’s power supply and reduce the number of people without electricity.
New electricity companies
NERC said the 13 new power generation, distribution, and trading licenses are Daybreak Power Solutions Limited received eight licenses for various off-grid power generation projects in Lagos, Abia, Borno, Kano, Oyo, and Abuja.
Others include:
- Ekiti Independent Power Project
- Olokiti Power Distribution Limited
- Ember Power Limited
- Energy Company of Nigeria Limited
"Completion is set": TCN announces date Nigerians will enjoy improved electricity supply
Legit.ng reported that the 53 ongoing power projects funded by the Central Bank of Nigeria (CBN) power intervention fund will be completed by May 2024, the Transmission Company of Nigeria (TCN) has announced.
Matthew Ajibade, the TCN programme coordinator in charge of the initiative, made this known during a tour of three projects located at Ojo, Isolo, and Oworonshoki transmission stations in Lagos on Wednesday 6 December.
According to Ajibade, the project will improve the ability to transport electricity by over 1,000 megawatts upon completion.
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Source: Legit.ng
