In the first quarter of 2023, the Nigerian Electricity Regulatory Commission (NERC) made significant strides in the power generation sector, issuing a total of 10 power generation licenses.
The Q1/2023 Electricity Report highlights the Commission’s approval of two new generation licenses with a combined nameplate capacity of 723 megawatts (MW) during this period.
Among the licenses authorized by NERC, two were dedicated to Independent Electricity Distribution Networks (IEDN), and an existing Independent Electricity Distribution license underwent approval for amendment. The details of these licenses are as follows:
- Alausa Power Limited: NERC approved a 23 MW off-grid gas-based power generation license for Alausa Power Limited at Rack Centre in Oregun, Ikeja, Lagos.
- ABV Utility Limited: A 20 MW power generation license was granted to ABV Utility Limited at Lekki, Lagos.
- Waltersmith Industrial Park Electricity Distribution Company Limited: NERC authorized a power generation license for Waltersmith Industrial Park Electricity Distribution Company Limited at Ohaji-Egbema, Imo state.
- Waltersmith Ugamma Power Company Limited: Another gas-based power generation license, this time with a capacity of 200 MW, was approved for Waltersmith Ugamma Power Company Limited, also located at Ohaji-Egbema, Imo state.
- Zungeru Hydro Electricity: One of the significant milestones in Q1/2023 was the approval of a 700 MW on-grid hydro-based power generation license for Zungeru Hydro Electricity, located at Kaduna River, Zungeru, Niger state.
In addition to the above licenses, NERC also granted approval for the issuance of five captive power generation permits, totalling 56.77 MW in nameplate capacity. These licenses are:
- E.T Energy Enterprises Global Limited: A captive power generation permit of 8 MW was approved for E.T Energy Enterprises Global Limited at Obiowo Ezeaba Nkanu West, Enugu State.
- Rack Centre Nigeria Limited: NERC authorized a captive power generation permit for Rack Centre Nigeria Limited at 18 Jagal Close, Oregun, Lagos State, with a capacity of 10 MW.
- Saipem Contracting Nigeria Limited: This company received two captive power generation permits – one for 5.14 MW at JV Camp, Rivers State, and another for 10.05 MW at Workers Village Camp, Rivers State.
- CHI Limited: The Commission granted CHI Limited a captive power generation permit for their facility at 14 Chivita Avenue, Ajao Estate, Lagos State, with a capacity of 23.59 MW.
What you should know
The licenses issued for both independent electricity distribution networks and captive power generation will play a crucial role in meeting the growing energy demands of various regions and industries across Nigeria.
The 2023 Electricity Act which was recently signed by President Bola Ahmed Tinubu, permits NERC to issue multiple generation licenses to independent power producers for generation of electricity from renewable and non-renewable sources.
All hands on deck, we will wait and see.@A.B.I.