ARTICLE
20 January 2025

The Mini-Grid Regulations 2023: Addressing Stakeholders' Concerns

TA
Tope Adebayo LP

Contributor

Established in 2008, Tope Adebayo LP offers holistic solutions in energy, disputes, and corporate transactions. Our diverse team crafts bespoke strategies for clients, driving industry wins and growth. We are a one-stop shop, licensed for legal, finance, and corporate services, with a global network for seamless cross-border transactions.
Towards achieving vision 30:30:30 through the increased penetration of mini-grids in Nigeria, the Nigerian Electricity Regulatory Commission (NERC or the "Commission") published a consultation paper in August 2022 calling for recommendations on its proposed amendment of the 2016 Mini-Grid Regulations.
Nigeria Energy and Natural Resources

Towards achieving vision 30:30:30 through the increased penetration of mini-grids in Nigeria, theNigerian Electricity Regulatory Commission (NERC or the "Commission") published a consultation paper in August 2022 calling for recommendations on its proposed amendment of the 2016 Mini-Grid Regulations (the "2016 Regulations").

Amongst the various proposals put forward by stakeholders in response to this call was a comprehensive position paper jointly developed by the Renewable Energy Performance Platform (REPP), the Renewable Energy Association of Nigeria (REAN), and the Africa Mini-grid Developers Association (AMDA), titled 'Future-proofing the expanding market: Recommendations for improving the bankability of the mini-grid regulatory framework in Nigeria'. Informed by their collective experiences as Developers, Financiers, and Operators within the Sector, the position paper proffered solutions aimed at stimulating investments and development within the Sector.

On the 29thof December 2023, the revised Mini-Grid Regulations (the "2023 Regulations") was finally released, incorporating NERC's proposed amendments as well as some recommendations made by stakeholders.

Addressing Stakeholder Concerns

The subsequent paragraphs provide a concise overview of challenges encountered by stakeholders under the 2016 Regulations, recommendations put forth, and the current position of the law under the 2023 Regulations.

  1. Conditions for the grant of Permits to isolated mini-grids larger than 100KW of distributed power and up to 1MW of generation capacity.
  2. Requirement of confirmation from Distribution Companies (DisCos):

Under the 2016 Regulations, as a prerequisite for granting a Mini-Grid Permit, a Developer of mini-grids within the above capacity range was required to provide NERC with confirmation that the proposed mini-grid project would not impede the expansion plans of a DisCo.

A key challenge encountered by Developers in this regard was the fact that DisCos' expansion plans were not publicly available making it difficult to confirm non-interference. Furthermore, it was observed that

1 Nigeria aims to attain a 30% share of renewables in its energy mix by the year 2030.

2 Consultation+Paper+on+Proposed+Review+of+Regulations+for+Mini-Grids+2016 (Last accessed January 25th, 2024).

3 https://repp.energy/wp-content/uploads/2022/12/221220-NG-mini-grid-policy-paper.pdf(Last accessed January 25th, 2024).

4 Reg 7(1)(b) Mini-grid Regulations 2016...

To read the full article, kindly download the PDF

To view original Tope Adebayo article, please click here.

Originally published by 18 April 2024

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More