During the second quarter of 2023, the Nigerian Electricity Regulatory Commission (NERC) issued some licenses and permits to several entities.
According to the Q2/2023 Electricity on Demand report by NERC, the Commission issued two electricity trading licenses to the following companies in the highlighted quarter:
- Electric Utility Nigeria Limited
- Onction Services Limited
Captive power plants
Captive power plants are power facilities owned and operated by an entity for its exclusive use, rather than for selling electricity to external parties. In the second quarter of 2023, the Commission granted permits for three captive power generation plants, boasting a combined nameplate capacity of 20.06 megawatts:
- Tower Alloys Industries Limited Ota Industrial Estate, located in Otta, Ogun State with a capacity of 10 megawatts.
- Junaid Synergy Limited is located at Kudirat Abiola Way, Ikeja, Lagos State with a capacity of 1.20 megawatts.
- Okomu Oil Palm Limited is located at Okomu, Ovia South, Edo State with a capacity of 8.86 megawatts.
Mini grid permits
The Commission grants a permit to a mini-grid developer when they intend to build, operate, maintain, and, when relevant, own mini-grids with a distribution capacity exceeding 100 kilowatts (kW) and generation capacity up to 1 megawatt (MW).
On the other hand, a registration certificate is issued to a mini-grid developer for one or more systems with a distribution capacity below 100 kW. NERC issued mini grid permits to ten companies:
- Powergen Nigeria Assets Limited located at Idanre, Ondo State with a capacity of 860 kilowatts (kW)
- Darway Coast Nigeria Limited located at Ifo, Ogun State with a capacity of 698 kW
- Bagaja Renewable Limited Kumbosto, Kano State with a capacity of 450 kW
- Bagaja Renewable Limited Kumbosto, Kano State with a capacity of 550 kW
- Solmenz Engineering Venture Nigeria Limited Gbako, Niger State with a capacity of 147 kW
- A4&T Projects Limited in Fagbo, Ondo State with a capacity of 169 kW
- GVE Projects Limited in Bakin Ciyawa, Plateau State with a capacity of 630 kW
- GVE Projects Limited in Kwande, Plateau State with a capacity of 340 kW
- Everlink Telesat Network Limited in Akugbene, Delta State with a capacity of 950 kW
- Everlink Telesat Network Limited Ogbidubudu, Delta State with a capacity of 460 kW.
What you should know
The licensing rules under the 2023 Electricity Act are expected to provide a background for the promotion of embedded power generation, hybridized generation, co-generation and the generation of electricity from renewable sources such as solar energy, wind, small hydropower, biomass and other renewable sources.
