The Federal Government has authorized MTN Communications Nigeria Limited, Havenhill Synergy, Golden Penny Power Limited, and other companies to develop mini-grid electricity projects.
The Nigerian Electricity Regulatory Commission (NERC) issued nine new off-grid generation licenses in the first quarter of 2024, totaling a capacity of 109.69 megawatts, along with three new trading licenses.
MTN is approved to build four captive generation plants with a combined capacity of 15.94 MW across Lagos State. Other companies, including Armilo Plastics Limited, SweetCo Foods Limited, West African Ceramics Limited, African Steel Mills Nigeria Limited, and Royal Engineered Stones Limited, have also been granted permits for captive power generation.
Golden Penny Power Limited received a license to construct six off-grid gas plants in Oyo, Cross River, Ogun, and Lagos states, with a total capacity of 100 MW.
NERC clarified that captive power generation permits are issued to entities that establish power plants for their own use rather than for sale to third parties. In the first quarter of 2024, NERC issued nine captive power permits with a total capacity of 52.57 MW.
Additionally, companies such as Daybreak Power Solutions, Auro Nigeria Private Limited, TIS Renewable Energy Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, and DMD Electric Limited have been licensed for mini-grid projects in Lagos State.
Under Section 165(1)(m) of the Electricity Act 2023, NERC is empowered to award mini-grid concessions to renewable energy firms to exclusively serve specific geographic areas, ensuring the provision of electricity to customers upon request.
Following a thorough evaluation, NERC granted three mini-grid permits and two registration certificates in the first quarter of 2024.