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MTN Communications Nigeria Limited has received a permit from the Nigerian Electricity Regulatory Commission (NERC) to build four captive power generation plants in Lagos State, with a combined capacity of 15.94 megawatts (MW). This permit is part of a broader initiative by the Nigerian government to increase power generation from 4,000 MW to 6,000 MW by the end of 2024.
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NERC has also granted permits to eight other companies, including Golden Penny Power Limited and Havenhill Synergy, for mini-grid electricity generation. These companies, such as SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited, have all been licensed to generate captive power.
In the first quarter of 2024, NERC issued nine new off-grid generation licences with a total capacity of 109.69 MW and three new trading licences. Among these, Golden Penny Power Limited was licensed to build six off-grid gas plants in Lagos, Oyo, Ogun, and Cross River states, with a combined capacity of 100 MW.
Captive power generation permits are granted to entities that build and maintain power plants solely for their own use, not for resale. In 2024/Q1, NERC issued nine such permits, totaling 52.57 MW in nameplate capacity.
Nigeria’s unreliable grid power makes telecom services expensive
Telecom networks like MTN require vast amounts of energy to operate. Due to Nigeria’s unreliable grid power, telecom companies often rely on costly diesel generators, which significantly increase the cost of telecom services. The operational and maintenance costs of these generators can exceed N215 billion for a single telecom company.
Other companies licensed by NERC for mini-grids include Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, and DMD Electric Limited in Lagos State. NERC also issued three mini-grid permits and two registration certificates in the first quarter of 2024.
Additionally, NERC certified six Meter Service Providers during this period, including four meter installers and two meter manufacturers. These providers are authorized by the commission to supply, install, maintain, and replace electric energy meters and metering systems. The certified companies include Genobet Limited, Mojec Meter Asset Management, Epagad International Services Limited, Abdulrahman Ahmadu Zubairu, Smart Meters Company Limited, and Crestflow Energy Limited.
NERC also released one regulation and 36 new Orders in the first quarter of 2024, including the Eligible Customer Regulations 2024 and the Multi-Year Tariff Order (MYTO) 2024 for Distribution Companies and the Transmission Company of Nigeria Plc. These regulations and orders are part of NERC’s ongoing efforts to enhance the regulatory framework of Nigeria’s electricity sector.
