NERC reveals modalities to unlock renewable energy investments
Ilenre Irele
The chairman of the Nigerian Electricity Regulatory Commission, NERC, Sanusi Garba, has announced that the Commission has established regulatory frameworks to support investors in renewable and distributed energy generation.
Speaking at the Summit on Accelerating Scale-up of Renewable and Distributed Energy Resources in Nigeria, Garba highlighted NERC’s commitment to creating an enabling environment for investors to tap into the country’s vast renewable energy potential.
The two-day event brings together key stakeholders to discuss strategies, regulations, and financing arrangements to deliver 30percent of the country’s 2030 power supply target from renewable energy sources.
Garba affirmed the Commission’s commitment to effectively drive actions to promote the expansion of renewable and distributed energy access in Nigeria, noting that Nigeria’s mini grid regulation by NERC was widely regarded as one of the best in the world.
“Nigeria’s quest for accelerated scale-up of distributed and renewable energy is not without challenges. We have regulatory frameworks designed to provide clarity and certainty for investors, ensuring that they can confidently invest in renewable energy projects and contribute to Nigeria’s sustainable energy future,” he said.
The key frameworks and guidelines, acording to him, include “Electricity Act 2023, which enables NERC to promote all forms of renewable energy through regulation and licensing.
“Supplementary Order to MYTO 2024, requiring DisCos to procure a minimum of 10 percent of their 2024 load allocation from embedded generation, with at least 50percent sourced from renewable energy sources.”
The NERC boss expressed optimism that efforts and deliberations at the summit will provide a platform for the electricity framework to promote energy access, enhance energy security, inclusive growth and accelerated access to electricity.
Also, the representative of the European Union delegation, Godfrey Ogbemudia, said the EU has partnered with Nigeria to promote renewable energy since 2008 and has put €200 million in grants up until 2020.
Ogbemudia said by 2021, the EU renewed its ability to fund renewable energy with €100 million to fund some 400 renewable energy projects that will benefit five million Nigerians and reduce carbon emissions.
“Let me commend NERC for taking bold steps and being innovative to promote renewable energy in Nigeria,” said Ogbemudia.
Declaring the summit open, the Minister of Power, Chief Adebayo Adelabu, commended the Nigerian Electricity Regulatory Commission, NERC for partnering with key stakeholders to hold the summit when such discussion was needed most.
“In a special way, I want to commend NERC for putting up this summit. This summit is an important step and in full alignment with President Bola Ahmed Tinubu’s presidential priorities highlighted in the Renewed Hope Agenda to develop a sustainable energy sector for the country.
“It is expected that intellectual discourse, such as this summit we are gathered here today, will highlight and expose the strategies, regulations and bankable financing arrangements that can be leveraged to deliver our target 30 gigawatts of power supply capacity by 2030 of which 30 percent are from renewable energy.”
Chairman of the Senate Committee on Power, Enyinnaya Abaribe, represented by Senator Anthony Ani, tasked stakeholders to work to promote the integration of renewable energy in the national grid as enshrined in the Electricity Act 2023 (Amended) and other legislations made by NERC.
