Business
FG to boost electricity supply, issues licenses to 13 new firms
In a bid to ramp up electricity generation and distribution across the country, 13 new companies have been issued new licences for the generation of off-grid and embedded power, independent electricity distribution, as well as for the trading of electricity.
The new licensees are Daybreak Power Solutions Limited which got 8 of the new licenses. Others are Olokiti Power Distribution Limited, Ember Power Limited, Energy Company OF Nigeria Limited, and Ekiti IPP Limited.
According to the Nigerian Electricity Regulatory Commission in its Third Quarter 2023 Report under the section titled, ‘Licences and Permits Issued or Renewed,’ five new off-grid generation licences that would generate 8.81MW were issued during the review period, as well as one new licence for embedded generation of 5MW.
On other licences that were issued, the commission said, “One new licence for Independent Electricity Distribution Network, one new licence for trading, three off-grid generation licences, one embedded generation, and one IEDN licence.”
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It explained that the commission issues licences for electricity generation, transmission, distribution, trading and system operations in the Nigeria Electricity Supply Industry.
“For activities that do not require licenses based on the provisions of sections 65-68 of the Electricity Act 2023, but still require authorisation from the commission, such as off-grid captive power generation and mini-grid development, the commission issues permits to the operators following a review of the relevant applications,” the NERC stated.
The issuance of licences for the generation of electricity by the government through NERC is another way of boosting the country’s power supply and reducing the number of persons who lack electricity.
Providing further explanation on the 13 new power generation, distribution and trading licences, the NERC in its report stated that Daybreak Power Solutions Limited received eight licences for various off-grid power generation projects in Lagos, Abia, Borno, Kano, Oyo and Abuja.
Ekiti Independent Power Project got a licence for the development of a gas-fired 5MW embedded power project to be constructed in Ekiti State. Olokiti Power Distribution Limited received an Independent Electricity Distribution Network licence that would be operational in Ekiti State.
Ember Power Limited got an electricity trading licence, while Island Power Limited got a licence for the development of a 10MW embedded gas-fired power project in Lagos.
Also, Energy Company of Nigeria Limited was issued an Independent Electricity Distribution Network licence that would be operational in Lagos State.