A recent directive from the Nigerian Electricity Regulatory Commission (NERC) permits developers to build mini-grids and linked mini-grids in areas where electricity distribution companies (DisCos) do not provide service.
The small grids will be situated in a designated unserved area and do not significantly interfere with a Distribution Licensee’s network development plan that has been approved by the Commission, according to the order signed by NERC Chairman Dr. Musiliu Oseni.
It stated that the applicant must submit a written authorization or no-objection from the Distribution Licensee if the planned area is specifically covered by a performance improvement plan, investment plan, or other commission-approved network expansion plan of the Distribution Licensee.
It further stated that if it is clear that the Distribution Licensee has not shown, within the time frame, any committed financing, budgetary provision, procurement action, or other objectively verifiable implementation commitment sufficient to support the permit’s denial, withholding, or delay, the developer may proceed.
It clarified that if a distribution licensee plans to expand its network to an isolated mini-grid that is run under a permit, the distribution licensee must give written notice to the mini-grid operator no later than 12 months before the extension is anticipated to reach the isolated mini-grid.
“When a Distribution Licensee expands its distribution network to an area served by an isolated mini-grid operated under a mini-grid permit, the mini-grid permit holder and the Distribution Licensee shall, within this notification period or any shorter period the commission may approve, negotiate in good faith one of the following transition to apply to continue operations by converting the isolated mini-grid into an interconnected mini-grid or transfer all the distribution assets of the mini-grid to the Distribution Licensee or another approved operator,” the statement stated.
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