Nigerian Govt Grants 13 New Power Licences, Boosting Off-Grid, Embedded Generation

The Nigerian Electricity Regulatory Commission (NERC) has granted 13 new licenses for off-grid and embedded power generation, independent electricity distribution, and electricity trading.

Speaking directly on the matter, the NERC stated that the cumulative quantum of electricity to be generated by these licenses amounts to an impressive 40.9 megawatts.

In the third-quarter report of 2023, the NERC detailed the issuance of five off-grid generation licenses generating 8.81MW, one embedded generation license for 5MW, and other licenses including Independent Electricity Distribution Network and trading.

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The commission clarified that it issues licenses for various electricity-related activities in the Nigeria Electricity Supply Industry.

Despite being Africa’s largest economy, Nigeria faces a persistent power deficit, generating between 3,500MW and 5,000MW for over 200 million people. Rural communities often experience blackouts, highlighting the urgent need for improved electricity access.

Notably, Daybreak Power Solutions Limited secured eight licenses for off-grid projects across multiple states, Ekiti Independent Power Project obtained a license for a 5MW embedded power project, and Olokiti Power Distribution Limited received an Independent Electricity Distribution Network license for Ekiti State. Ember Power Limited and Island Power Limited also obtained licenses for electricity trading and a 10MW embedded gas-fired power project, respectively.

This move aligns with the government’s ongoing efforts to enhance electricity output and reduce the 86 million Nigerians living without electricity, as reported in June 2023.

Despite challenges, the issuance of these licenses signifies a strategic step towards addressing the power supply gap and meeting the demands of power consumer groups advocating for improved electricity services in the country.