The Nigerian Electricity Regulatory Commission (NERC) has disclosed that the Federal Government recently issued 13 new licences for independent electricity distribution and electricity trading. The announcement was made in the NERC’s statement, revealing that these licences were granted during the third quarter of 2023.
According to the NERC, the cumulative electricity generation capacity of the licensees is 40.9 megawatts. In its latest third-quarter 2023 report under the section titled ‘Licences and Permits Issued or Renewed,’ the NERC specified that during the review period, five new off-grid generation licences, with a total capacity of 8.81MW, were issued. Additionally, one new licence for embedded generation with a capacity of 5MW was granted.
The report clarified that the NERC issues licences for various activities within the Nigeria Electricity Supply Industry, encompassing electricity generation, transmission, distribution, trading, and system operations. For activities not requiring licences but necessitating authorization from the commission, such as off-grid captive power generation and mini-grid development, permits are issued following a thorough review of relevant applications, as per the provisions of sections 65-68 of the Electricity Act 2023.
In addition to the off-grid and embedded generation licences, the NERC highlighted that other licences issued included one new licence for Independent Electricity Distribution Network (IEDN), one for trading, and one IEDN licence. The move reflects the government’s efforts to enhance and diversify the electricity distribution landscape in the country.