By Emmanuel Ogbodo
The Nigerian Electricity Regulatory Commission (NERC) has granted MTN Communications Nigeria Limited a licence to generate 15.94MW of electricity across Lagos State. Alongside MTN, permits were also issued to Golden Penny Power Limited, Havenhill Synergy, and other entities for mini-grid electricity generation.
According to NERC, nine new off-grid generation licences, totaling 109.69 megawatts, and three trading licences were issued in the first quarter of 2024. MTN’s licence allows the construction of four captive generation plants in Lagos, while Golden Penny Power Limited received approval for six off-grid gas plants in Lagos, Oyo, Ogun, and Cross River states, with a combined capacity of 100MW.
Captive power generation permits, meant for entities generating power for their own consumption rather than sale, accounted for nine permits with a total capacity of 52.57MW in Q1 2024. Other companies granted similar permits include SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited.
The Punch reports that additional licences for mini-grid construction were awarded to companies such as Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, and DMD Electric Limited Lagos State.
Under Section 165(1)(m) of the Electricity Act 2023, NERC is authorised to issue licences for mini-grid concessions to renewable energy firms serving specific geographical areas. Permits are given for mini-grids with distribution capacities above 100 kilowatts and generation capacities up to 1MW. The commission also provides registration certificates for mini-grid systems with distribution capacities below 100kW. In Q1 2024, NERC issued three mini-grid permits and two registration certificates following successful application evaluations.
