NERC approves new rules to generate 2,000mw from renewable sources

NERC Chairman, Dr. Sam Amadi

NERC Chairman, Dr. Sam Amadi

THE Nigerian Electricity Regulatory Commission (NERC) has approved a new regulation, which hopes to stimulate investment in renewable energy sources and generate at least 2000mw by the year 2020.

The law, Feed-in Tariff Regulations for Renewable Energy Sourced projects that Nigeria would generate at least 1,000 megawatts from renewable energy sources by 2018.

Renewable sources are electricity generated from biomass, small hydro, wind and solar energy sources.

Chairman of NERC, Dr. Sam Amadi said in Abuja at the weekend: “With this regulation, we have been able to unlock further investment potentials in the country’s power sector. Its major objective is to diversify our sources of electricity and take advantage of our options.”

He said that the regulation expects electricity distribution companies to procure 50 per cent of the projected renewable sourced electricity, while the Nigerian Bulk electricity Trading Company (NBET) is expected to procure the balance of 50 per cent.

The law specifies capacity for renewable plant should between 1mw and 30mw. Plant above this threshold will require additional conditions other than those already specified in the regulation.

“The provisions of these regulations shall apply to all qualifying renewable energy sourced electricity of capacity above 1megawatt and smaller than 30mw at a site that is connected to the transmission grid or the distribution networks.

“For large renewable (30mw above) integrated resource planning will be carried out before the NERC will initiate a competitive bid process.”
The buyer will after this solicit bids and purchase at the most cost effective based on the optimal technology available at the location.

The law allots maximum amount of renewable sourced electricity an electricity distribution can have on its network based optimal potential available in their franchised areas.

This provision of the law is to achieve right mix of energy for the DISCO as well as protect electricity consumers from spike in tariff.

Receive News Alerts on Whatsapp: +2348136370421

  • Ayo

    Let every roof and spaces around the house be covered by solar panels and let them have the feed-in metres that will feed the excess unutilized energy into the general grid and such is paid back to the producing house either in cash or one form of rebate or the other or as a part of a refund of the loan used to acquire the solar or renewable generation kit or equipment. Every person should be given access to funding to assist in procuring renewable power generation facilities instead of looking only at big power plants.

    Electricity generation should be democratized.

  • emmanuel kalu

    As good as the regulation is, it is not really the problem facing Nigeria right now. we have installed capacity of 6000MW, but we can only generate half of that, and not even transmit all of that. what NERC needs to focus on is securing meters for every customer, increasing transmission, ensuring adequate and steady supply of gas to the geneco. This is a good regulation, however to effectively unlock the investment in this space, NERC need to review the rules that forces every generating source of power to transmit it to the national grid. we need to allow generating companies of all sources, to first sell to the region closest to them, and then any excess or a certain portion can be sold to the national grid. There needs to be funding for investor willing to install renewable energy source in rural area. we don’t have much investment in this renewable, because which investor wants to invest in this and then have a problem selling to the national grid, that can’t transmit any more power. an investor in renewable energy would be more willing to invest, if he can immediately sell his energy to the area or people that would purchase all of it and generate returns for them.