Federal Government Grants 13 New Licences to Boost Power Generation, Distribution

By: Shabach Bako

Nigerian Electricity Regulatory Commission, acting on behalf of the Federal Government, has recently issued 13 new licences aimed at bolstering power generation, distribution, and trading across the country. The licences, granted in the third quarter of 2023, signal a move towards enhancing both on-grid and off-grid electricity supply, addressing the current challenges faced by Nigeria’s power sector.

The licenses cover various aspects of the electricity supply chain, including off-grid and embedded power generation, independent electricity distribution, and electricity trading. In total, the cumulative capacity of the newly licensed facilities is estimated to generate 40.9 megawatts of electricity.

During the third quarter of 2023, five off-grid generation licences, generating 8.81MW, were issued, along with one embedded generation licence capable of producing 5MW.

The Nigerian Electricity Regulatory Commission (NERC) clarified that these licences are pivotal for activities such as electricity generation, transmission, distribution, trading, and system operations within the Nigeria Electricity Supply Industry. Furthermore, the commission issues permits for off-grid captive power generation and mini-grid development in instances where a full license is not required under the Electricity Act of 2023.

Nigeria’s current power generation ranges between 3,500MW and 5,000MW, a figure deemed insufficient for its population of over 200 million. Despite recent efforts by the government and industry operators, large parts of the country, especially rural areas, continue to face blackouts. The issuance of these new licences aligns with ongoing initiatives to improve electricity supply and extend access across the nation.

The NERC report detailed that the recently issued licences include projects by Daybreak Power Solutions Limited for off-grid power generation in multiple states, Ekiti Independent Power Project for a 5MW embedded power project in Ekiti State, Olokiti Power Distribution Limited for an Independent Electricity Distribution Network in Ekiti State, Ember Power Limited for electricity trading, Island Power Limited for a 10MW embedded gas-fired power project in Lagos, and Energy Company of Nigeria Limited for an Independent Electricity Distribution Network in Lagos State.