Nigeria’s Electricity Regulation Commission (NERC) has approved a new regulation that gives distribution companies licences to use mini-grids to accelerate electrification across the country.
The development of mini-grids will spread electricity access, particularly in rural or poorly-serviced areas, without causing excess strain on the national grid. The regulation applies to participants in the private sector, local communities and NGOs.
Unlock unlimited access for 12 whole months of distinctive global analysis
Photovoltaics International is now included.
- Regular insight and analysis of the industry’s biggest developments
- In-depth interviews with the industry’s leading figures
- Unlimited digital access to the PV Tech Power journal catalogue
- Unlimited digital access to the Photovoltaics International journal catalogue
- Access to more than 1,000 technical papers
- Discounts on Solar Media’s portfolio of events, in-person and virtual
Pursuant to draft regulation, a mini-grid will include any system with an electricity generator of a 10kW and above capacity, which supplies electricity to a target set of consumers that can operate either in isolation or be connected to a distribution network. For distributed power of up to 100kW, a permit is optional for the operator, while systems between 100kW-1MW will require a permit.
NERC has said that it seeks to ameliorate the typical risks associated with mini-grids such as sudden tariff changes and what is known as stranded mini-grid operator investments. To further encourage this new regulation to take off, mini-grid tariffs are said to be “cost-effective” according to NERC, who also added that tariffs would be lower than any electricity supply of the same quality generated from conventional sources.
