MTN, Golden Penny, and Others Granted Permits for Electricity Generation by NERC

The Nigerian Electricity Regulatory Commission (NERC) has granted permits to prominent companies, including Golden Penny Power Limited, MTN Communications Nigeria Limited, and Havenhill Synergy, to generate electricity through mini-grid systems. In the first quarter of 2024, NERC issued nine new off-grid generation licenses with a combined capacity of 109.69 megawatts, alongside three new trading licenses. These permits are part of ongoing efforts to bolster Nigeria’s electricity generation capacity. Golden Penny Power Limited received a license to construct six off-grid gas plants across Lagos, Oyo, Ogun, and Cross River states, with a total capacity of 100MW. MTN Communications Nigeria Limited was also granted a permit to establish four captive generation plants in Lagos State, with a total capacity of 15.94MW. In addition to MTN, other companies such as SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited have been authorized to generate captive power.

NERC explained that captive power generation permits are given to entities that intend to generate electricity for their own consumption rather than selling it to third parties. The nine captive power generation permits issued in the first quarter of 2024 have a combined capacity of 52.57MW. Moreover, companies like Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, and DMD Electric Limited were licensed to develop mini-grids in specific geographical locations. The Electricity Act 2023 empowers NERC to grant mini-grid concessions to renewable energy companies, ensuring that they generate and distribute electricity within defined areas while fulfilling customer service obligations.

During the period under review, NERC also certified six Meter Service Providers, including meter installers and manufacturers, to enhance metering services across the country. Among the certified providers are Genobet Limited, Mojec Meter Asset Management, Epagad International Services Limited, Abdulrahman Ahmadu Zubairu, Smart Meters Company Limited, and Crestflow Energy Limited. In addition to the permits, NERC issued one regulation and 36 new Orders in the first quarter of 2024, covering various aspects of electricity distribution, metering, and tariff regulations. These Orders aim to guide the activities of licensees and ensure the efficient operation of Nigeria’s electricity sector.