NERC grants electricity permits to MTN, other companies

The Nigerian Electricity Regulatory Commission (NERC) has granted permits for mini-grid electricity generation to MTN Communications Nigeria Limited, Golden Penny Power Limited, Havenhill Synergy, and several other companies.

In the first quarter of 2024, NERC granted nine off-grid generation licenses with 109.69 megawatts capacity and three trading licenses.

As stated in a report by the commission, MTN received a permit to construct four captive generation plants in Lagos State, with a total capacity of 15.94 MW.

Additionally, Golden Penny Power Limited received a license to establish six off-grid gas plants across Lagos, Oyo, Ogun, and Cross River states.

These plants will have a combined capacity of 100 MW.

Besides MTN, SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited were authorized to generate captive power.

Section 165(1)(m) of the Electricity Act 2023 authorizes the commission to grant licenses for mini-grid concessions to renewable energy companies.

This allows them to exclusively serve a designated geographical area.

The license details the total electricity to be generated and distributed, with a commitment to meet service requests within the area.

Under this framework, the commission promotes renewable energy by issuing permits and certificates for mini-grid projects.

The commission reported issuing one regulation and 36 new orders in the first quarter of 2024.

These include NERC–R–001–2024, which pertains to Eligible Customer Regulations for 2024.

Additionally, NERC/2023/023 through NERC/2023/033 cover the Multi-Year Tariff Order 2024 for Distribution Companies, and NERC/2023/034 is the MYTO 2024 for the Transmission Company of Nigeria Plc.

In the quarter, the commission issued 36 orders to regulate the activities of licenses.

Impact of new NERC electricity licenses

New NERC licenses for mini-grid and off-grid solutions are set to significantly enhance Nigeria’s electricity supply.

Licenses granted to companies like MTN and Golden Penny Power will significantly boost Nigeria’s national energy capacity.

This will help alleviate the chronic power shortages that have long plagued the country.

These licenses will boost electricity availability by supporting new generation plants, especially in areas underserved by the national grid.

This will not only improve reliability for businesses and industries but also enhance the quality of life for residents in these regions.

The added capacity is crucial as Nigeria’s demand exceeds supply, causing frequent blackouts and reliance on costly, polluting generators.

Moreover, the introduction of off-grid solutions means that power can be brought to rural and remote areas that are not connected to the national grid.

This is particularly important in a country with a large and dispersed population, where centralized grid expansion is both costly and slow.

These new licenses ensure remote communities can access reliable electricity by focusing on localized energy solutions.

The new NERC licenses are expected to foster economic growth and improve overall living standards.

In summary, the new licenses will enhance Nigeria’s electricity supply by expanding capacity.

Thay will also improve grid reliability and serve underserved areas.

Company profiles and their role

Companies like MTN and Golden Penny Power, granted new electricity licenses, play pivotal roles in Nigeria’s energy landscape.

MTN, a telecom giant, is expanding into power generation to ensure reliable energy for its extensive network infrastructure.

Golden Penny Power, a Flour Mills subsidiary, focuses on off-grid gas plants to support manufacturing and boost local energy supply.

These companies’ involvement reflects a trend of businesses diversifying into energy production.

Their investments, in turn, will expectedly ensure stable power and reduce grid dependence, according to NERC.

address internal power needs and help improve electricity availability in Nigeria, especially in underserved regions.

Future outlook and challenges

Nigeria’s electricity sector outlook is promising, with new NERC off-grid and mini-grid licenses set to enhance power availability and reliability.

Expanding these initiatives will improve energy access in rural areas.

They will, as well, boost economic development and reduce reliance on diesel generators.

However, several challenges remain, NERC observed.

Overcoming regulatory hurdles, securing funding, and addressing infrastructure issues are crucial for the successful implementation of projects.

Additionally, the integration of new generation capacities with existing systems poses technical and logistical challenges.

For Diaspora Digital Media Updates click on Whatsapp, or Telegram. For eyewitness accounts/ reports/ articles, write to: citizenreports@diasporadigitalmedia.com. Follow us on X (Fomerly Twitter) or Facebook