MTN, Others Granted Permits to Produce Electricity
The Nigerian Electricity Regulatory Commission (NERC) has issued permits for mini-grid electricity generation to various companies, including Golden Penny Power Limited, MTN Communications Nigeria Limited, and Havenhill Synergy. This move aims to enhance electricity access and promote off-grid energy solutions.
In the first quarter of 2024, the NERC granted nine new off-grid generation licences, which collectively have a gross capacity of 109.69 megawatts. Alongside these, three new trading licences were also issued to facilitate the growing energy market.
Golden Penny Power Limited has received a licence to construct six off-grid gas plants located in Lagos, Oyo, Ogun, and Cross River states. These plants will have a total capacity of 100 megawatts, significantly contributing to the local energy supply.
MTN Communications has been authorized to establish four captive generation plants in Lagos State, which will have a combined capacity of 15.94 megawatts. This initiative reflects MTN’s commitment to improving energy reliability for its operations.
In addition to MTN, several other companies have been granted permits for captive power generation. These include SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited.
The NERC has issued a total of nine captive power generation permits in the first quarter of 2024, amounting to a nameplate capacity of 52.57 megawatts. These permits are designed for entities that wish to generate power for their own use rather than for resale.
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Among the other companies licensed for mini-grids are Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, and DMD Electric Limited in Lagos State. This diverse group reflects the growing interest in off-grid solutions.
The Electricity Act 2023, specifically Section 165(1)(m), allows the commission to award mini-grid concessions to renewable energy companies. This legislation aims to ensure that specific geographical areas receive dedicated electricity generation and distribution services.
The NERC continues to promote the development and utilization of renewable energy by issuing permits and registration certificates for mini-grid projects. This approach is part of a broader strategy to enhance energy access and sustainability in Nigeria.
Overall, the recent permits signify a positive step toward increasing electricity generation capacity and supporting the transition to renewable energy sources in Nigeria.
