Permit Granted: MTN, Other Firms Get Licenses to Generate Electricity

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

According to NERC, nine new off-grid generation licenses were issued in the first quarter of 2024, amounting to a combined capacity of 109.69 megawatts. Additionally, three new trading licenses were granted during this period.

Golden Penny Power Limited received a license to construct six off-grid gas plants across Lagos, Oyo, Ogun, and Cross River states, with a total capacity of 100MW. MTN Communications was also granted permission to build four captive generation plants in Lagos State with a combined capacity of 15.94MW.

Other companies that received permits 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.

Captive power generation permits are issued to entities that generate power for their own consumption and not for sale to third parties. In the first quarter of 2024, NERC issued nine such permits, totaling 52.57MW.

NERC also licensed several companies for mini-grid electricity generation, 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 is authorized to award licenses for mini-grid concessions to renewable energy companies. These companies are allowed to generate and distribute electricity in specific geographical locations with an obligation to serve the needs of customers who request service.

NERC has been actively promoting the development and use of renewable energy by issuing permits and registration certificates for mini-grid projects. These permits allow developers to construct, operate, and maintain mini-grids with a distribution capacity of over 100 kilowatts and generation capacity of up to 1MW. For smaller systems with a distribution capacity below 100kW, NERC issues registration certificates.

In the first quarter of 2024, NERC issued three mini-grid permits and two registration certificates after evaluating the applications.

During this period, NERC also certified six Meter Service Providers, including four meter installers and two meter manufacturers. These providers are authorized to manufacture, supply, install, maintain, and replace electric energy meters.

The certified meter service providers include Genobet Limited, Mojec Meter Asset Management, Epagad International Services Limited, Abdulrahman Ahmadu Zubairu, Smart Meters Company Limited, and Crestflow Energy Limited.

In addition to these developments, NERC issued one regulation and 36 new orders in the first quarter of 2024. These orders include the Eligible Customer Regulations 2024, the Multi-Year Tariff Order 2024 for Distribution Companies, and performance improvement plans for the Transmission Company of Nigeria, among others.

These regulatory actions are aimed at guiding the activities of licensees and ensuring compliance with industry standards.