FEDERAL GOVERNMENT ISSUES 13 NEW POWER GENERATION, DISTRIBUTION LICENCES
Written by Olakunle Oke on January 16, 2024
The Nigerian Electricity Regulatory Commission (NERC) has injected excitement into the country’s power sector with the issuance of 13 new licenses in the third quarter of 2023. This wave of approvals represents a commitment to diversifying energy sources and boosting overall capacity by 40.9 megawatts.
Five of the new licenses focus on off-grid generation, bringing 8.81 megawatts of decentralized power to underserved areas. An additional license for embedded generation adds another 5 megawatts to the mix, catering to specific industrial or commercial needs.
Beyond generation, NERC has also paved the way for independent electricity distribution and electricity trading. One license each in these categories opens doors for greater competition and flexibility in the power market. Additionally, three more off-grid and one embedded generation license were issued, along with another Independent Electricity Distribution Network license.
These moves by NERC signal a proactive approach to addressing Nigeria’s power challenges. By encouraging alternative energy sources, independent distribution, and trading, the Commission aims to create a more resilient and dynamic power sector. This not only promises immediate benefits through increased capacity and access, but also lays the groundwork for long-term growth and innovation in the Nigerian energy landscape.
However, it’s important to note that translating these licenses into operational power plants and viable networks will require continued effort and investment. Monitoring the progress of these projects and providing necessary support will be crucial in ensuring their success and maximizing their impact on the nation’s electricity supply.
Overall, the issuance of these 13 licenses marks a significant step forward for Nigeria’s power challenges. The diversification of energy sources, increased competition, and focus on local needs hold the potential to significantly improve access to reliable electricity for millions of Nigerians.
READ ALSO: NNPCL to hand over Port Harcourt refinery to private operators
Sources: Jordan105.5fm News Bulletin.
Pingback: