Power Outage: NERC To Allow Mini-Grids In Communities

The Nigerian Electricity Regulatory Commission (NERC) has issued a new order allowing developers to construct mini-grids and interconnected mini grids in communities not served by electricity Distribution Companies (DisCos).

The order signed by NERC’s Chairman, Dr. Musiliu Oseni, stated that the mini grids will be located in a designated unserved area and does not materially conflict with a Distribution Licensee’s network expansion plan approved by the Commission.

It noted that provided that where the proposed area is expressly covered by a performance improvement plan, investment plan, or other commission-approved network expansion plan of the Distribution Licensee, the applicant shall submit a written consent or no-objection of the Distribution Licensee.

It added that the developer can go ahead  where it is evident that the Distribution Licensee has not demonstrated, within the period, any committed financing, budgetary provision, procurement action, or other objectively verifiable implementation commitment sufficient to justify refusal, withholding, or delay of the permit.

It explained that in the event that a distribution licensee intends to extend its network to an isolated mini-grid operated under a permit, the Distribution licensee shall notify the mini-grid operator in writing no later than 12 months before the grid extension is expected to reach the isolated mini-grid.

“Where a Distribution Licensee extends 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 such shorter period as 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,” it said. (DailyTrust)