MTN and Others Receive Permits to Generate Electricity

MTN and several companies have been granted permits to generate electricity in Nigeria, aiming to enhance power supply and reduce reliance on the national grid.

Golden Penny Power Limited, MTN Communications Nigeria Limited, Havenhill Synergy and other establishments have obtained licenses from the Nigerian Electricity Regulatory Commission for producing electricity through mini-grids.

In Q1 of 2024, nine fresh off-grid generation licenses and three trading licenses were issued by the NERC. These new permits have a total capacity of 109.69 megawatts.

Golden Penny Power Limited obtained a license from the commission to construct six gas plants that are off-grid in Lagos, Oyo, Ogun and Cross River states. The overall capacity is 100MW as per their report.

MTN was authorized to construct four captive generation plants throughout Lagos State, with a total capacity of 15.94MW.

On the second day of #endbadgovernanceinnigeria, a significant incident occurred at Ojota protest ground when a young boy was seen participating in the demonstration.

Other than MTN, captive power generation was also permitted for SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited and Armilo Plastics Ltd.

During Q1 of 2024, the commission granted nine captive power generation permits to organizations seeking ownership and management of power plants used solely for personal consumption rather than third-party sales. These permits authorize a total nameplate capacity of 52.57MW.

According to our correspondent’s findings, there are additional licensed mini-grid companies such as Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited and Centum Dopemu Energy Services Ltd along with DMD Electric Limited based in Lagos State.

Renewable energy companies are allowed, under Section 165(1)(m) of the Electricity Act 2023, to be granted licenses for mini-grid concessions. These concessions are limited to specific geographical locations and entail generating and distributing a predetermined amount of electricity from a designated site with an obligation to fulfill customer requests for service exclusively within that location.

The commission has expressed its continued support for the growth and usage of renewable energy by issuing registration certificates and permits, specifically targeting mini-grid development.

The mini-grid developer is granted permission to build, manage and maintain mini-grids with a distribution capacity greater than 100 kilowatts and generation capacity up to 1MW. They may also have ownership of said grids in certain cases.

The Minister of Power guarantees Nigerians consistent provision of electricity.

Poor services are blamed on low investment by telcos.

Poor output has been hindering telcos from delivering high-quality service.

According to the commission’s disclosure, registration certificates are issued for one or multiple systems with a distribution capacity of less than 100kW to mini-grid developers.

According to the NERC, three mini-grid permits and two registration certificates were issued in 2024/Q1 subsequent to a gratifying assessment of mini-grid applications.

NERC declared the certification of six Meter Service Providers, comprising two meter manufacturers and four meter installers during the reviewed timeframe.

The commission certifies entities as Meter Service Providers when they are manufacturers, suppliers, vendors, or installers of electric energy meters and/or metering systems.

The Commission authorizes certain entities as Meter Asset Providers, allowing them to perform metering services such as financing, procurement, supply, installation, maintenance and replacement.

Genobet Limited, Mojec Meter Asset Management, Epagad International Services Limited, Abdulrahman Ahmadu Zubairu, Smart Meters Company Limited and Crestflow Energy Limited are all certified providers of meter services; with Genobet Limted,Mojec Mate Asset management,Epagad international Servises limitedand Abduraham Ahmed Zubari dealing in installation while smart meters compnay limtied as well his crest flow energy specializeds in manufacturing.

In Q1 of 2024, the commission released 36 new orders and one regulation. These included NERC-R-001-2024 for Eligible Customer Regulations in 2024, Multi-Year Tariff Orders (MYTO) for Distribution Companies under NERC/2023/023 to NERC/2023/033 as well as MYTO for Transmission Company of Nigeria PLC via order number NERC/2032//34.

Several other orders include NERC/2023/035 which pertains to the Performance Improvement Plan of the Transmission Company of Nigeria, NERC/ 2024 /001 relating to Regulatory Intervention in Kaduna Electricity Distribution Plc and finally, both NERC/2024 /004 as well as NERC/2024 /014 pertain to Noncompliance with Capping Estimated Bill by DisCos during January through September 23′. Also included are supplementary orders for Discos dated February 24′, ranging from order numbers:NERC\2024\016 all througjN ERC \ RF&f0/XOl-6.

Throughout the quarter, 36 orders were issued by the commission to provide guidance for licensees’ activities.