NERC Issues Mini-Grid and Captive Power Permits to Golden Penny, MTN, and Others

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The Nigerian Electricity Regulatory Commission (NERC) has granted permits to several companies, including Golden Penny Power Limited, MTN Communications Nigeria Limited, and Havenhill Synergy, for the generation of mini-grid electricity.

In the first quarter of 2024, NERC issued nine off-grid generation licenses with a total capacity of 109.69 megawatts and three new trading licenses.

According to a report by the commission, Golden Penny Power Limited received a license to construct six off-grid gas plants across Lagos, Oyo, Ogun, and Cross River states, with a combined capacity of 100 megawatts. MTN was also granted a permit to build four captive generation plants in Lagos State, with a total capacity of 15.94 megawatts.

Other companies permitted to generate captive power include SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited.

Captive power generation permits are issued to entities intending to generate power solely for their own use and not for sale to third parties.

NERC also continued its support for renewable energy by issuing permits and registration certificates for mini-grid development.

In Q1 2024, the commission issued three mini-grid permits and two registration certificates, supporting projects with distribution capacities up to 1 megawatt.

Additionally, six Meter Service Providers were certified during the quarter, including four meter installers and two meter manufacturers.

The commission issued one regulation and 36 new orders to guide licensees’ activities, including the Multi-Year Tariff Order 2024 for Distribution Companies and the Transmission Company of Nigeria.

These developments reflect NERC’s ongoing efforts to expand electricity generation and improve the regulatory framework in Nigeria’s power sector.

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