The Nigerian government has announced 13 new licences to generate off-grid, embedded power and independent electricity distribution. The Nigerian Electricity Regulatory Commission (NERC) disclosed this in a recent sectoral report.
It stressed that new licences were issued in the third quarter of 2023 and are expected to generate a cumulative 40.9 megawatts.
It said the new licences were issued in the third quarter of 2023, as the cumulative quantum of electricity to be generated by the licensees was 40.9 megawatts.
NERC, in its report, stated that Daybreak Power Solutions Limited received eight licences for various off-grid power generation projects in Lagos, Abia, Borno, Kano, Oyo and Abuja.
Daily Post reports that Ekiti Independent Power Project got a licence to develop a gas-fired 5MW embedded power project to be constructed in Ekiti State.
Olokiti Power Distribution Limited received an Independent Electricity Distribution Network licence that would be operational in Ekiti State.
Ember Power Limited got an electricity trading licence, while Island Power Limited got a licence for developing a 10MW embedded gas-fired power project in Lagos.
Also, Energy Company of Nigeria Limited was issued an Independent Electricity Distribution Network licence that would be operational in Lagos State.
“One new licence for Independent Electricity Distribution Network, one new licence for trading, three off-grid generation licences, one embedded generation, and one IEDN licence.”
“For activities that do not require licenses based on the provisions of sections 65-68 of the Electricity Act 2023 but still require authorisation 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,” the NERC stated.
This comes as Nigeria generates between 3,500MW and 5,000MW of electricity for the over 200 million people across the country, a development described as poor for Africa’s biggest economy.