In 2016, the Nigerian Electricity Regulatory Commission (“NERC”) issued the Regulation for Mini-grids of that year (the “Mini-grid Regulations”) in line with the powers conferred on it by the Electric Power Sector Reform Act 2005 (“EPSRA”) to make regulations.
The Mini-grid Regulations was issued for the purpose of creating a framework to regulate the operation of Mini-grids in Nigeria, improving rural electrification and consequently spur private sector involvement in the off-grid sector. However, the operationalisation of the Mini-grid Regulations has revealed some gaps that have created bottlenecks in the realisation of the objectives of the Mini-grid Regulations.
Further to the foregoing and following consultations between NERC and the Nigerian Energy Support Program, NERC released a Consultation Paper on the Proposed Review of the Mini- grid Regulations dated August 2022 (the “Consultation Paper”). The Consultation Paper seeks to achieve the following:
- A review of the Mini-grid Regulations to allow for submission of simultaneous applications for portfolio of Mini-grid sites.
- To define what portfolio of interconnected Mini-grids and isolated Mini-grids shall mean.
- To further allow for submission of a single tariff application for a portfolio of Mini-grid sites.
- To improve the quality and frequency of monitoring and evaluation reporting for Mini-grid installations across Nigeria
The Consultation Paper can be accessed here.
Any responses or critiques to these proposed amendments are welcomed by NERC for their consideration.
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