MTN, Others get electricity generation licences

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MTN Communications Nigeria Limited, Havenhill Synergy, and others have been granted electricity generation licences.

The licences were issued to them by the Nigerian Electricity Regulatory Commission, NERC.

It borders on mini-grid electricity generation and captive power.

The NERC in a report by the commission said it issued nine new off-grid generation licences in the first quarter of 2024 with a gross capacity of 109.69 megawatts and three new trading licences.

The report said further that Golden Penny Power Limited got a licence to build six off-grid gas plants in Lagos, Oyo, Ogun, and Cross River states. The total capacity is 100MW.

In the case of MTN, it was granted a permit to build four captive generation plants across Lagos State with 15.94MW capacity.

Beyond MTN and Golden Penny, the likes of SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited got permits to generate captive power.

“Captive power generation permits are issued to entities that aim to own and maintain power plants for generating power for consumption and not for sale to a third party. The commission issued nine captive power generation permits in 2024/Q1 with a total nameplate capacity of 52.57MW,” the report explained.

Other licensed companies for mini-grids are Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, DMD Electric Limited Lagos State.

Section 165(1)(m) of the Electricity Act 2023 permits the commission to award licence of mini-grid concessions to renewable energy companies to exclusively serve a specific geographical location indicating aggregate electricity to be generated and distributed from a site with the obligation to serve customers to request service.

Under this, the commission said it has continued to encourage the development and utilisation of renewable energy by issuing permits and registration certificates for mini-grid development.

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