The Nigerian Electricity Regulatory Commission (NERC) has granted permits for mini-grid electricity generation to several companies, including Golden Penny Power Limited, MTN Communications Nigeria Limited and Havenhill Synergy.
NERC had issued a total of nine new off-grid generation licenses, which together have a capacity of 109.69 megawatts, along with three new trading licenses in the first quarter of 2024 .
Among the newly licensed entities, Golden Penny Power Limited received approval to establish six off-grid gas plants in Lagos, Oyo, Ogun, and Cross River states, with a total capacity of 100 megawatts.
MTN was authorized to set up four captive generation plants in Lagos State, contributing an additional 15.94 megawatts.
Other companies permitted for captive power generation include SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited.
The NERC clarified that captive power generation permits are intended for entities that generate power for their own consumption rather than for sale to third parties. In total, nine such permits were issued in the first quarter of 2024, with a combined capacity of 52.57 megawatts.
Additionally, several other companies were licensed for mini-grid operations, including Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, and DMD Electric Limited.
Under Section 165(1)(m) of the Electricity Act 2023, NERC has the authority to grant mini-grid concessions to renewable energy companies, enabling them to serve specific geographical areas with a commitment to provide electricity to customers who request it.
