NERC Approves Mini-Grids for Unserved Communities

The Nigerian Electricity Regulatory Commission (NERC) has announced a new order permitting the development and construction of mini-grids in communities that lack electricity service from distribution companies (DisCos). NERC's chairman, Dr. Musiliu Oseni, stated that these mini-grids will be located in unserved areas and will not materially conflict with the distribution license's network expansion plans.

The commission noted that proposals for these areas must explicitly cover performance improvement and investment plans. DisCos must submit written consent for the mini-grid development, and if they do not demonstrate sufficient justification for refusal within a specified period, the mini-grid operators may proceed.

Furthermore, if a distribution license intends to extend its network to an isolated mini-grid, it must notify the mini-grid operator within 12 months. The mini-grid permit holders will also have the opportunity to negotiate the conversion of isolated mini-grids into interconnected systems.