Poor power supply: FG intervenes, issues 13 new power generation, distribution licences

The Federal Government says it has issued 13 new licences for the generation of off-grid and embedded power, independent electricity distribution and the trading of electricity.

The Nigerian Electricity Regulatory Commission (NERC) announced 13 new power generation, distribution and trading licences in its report.

They are Daybreak Power Solutions Limited which 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 in Ekiti State and Olokiti Power Distribution Limited that received an Independent Electricity Distribution Network licence that would be operational in Ekiti State.

Others are Ember Power Limited which 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.

In addition, Energy Company of Nigeria Limited was issued an Independent Electricity Distribution Network licence that would be operational in Lagos State.

According to NERC, the new licences were issued in the third quarter of 2023, as the cumulative quantum of electricity to be generated by the licensees was 40.9 megawatts.

Under the Section titled, ‘’Licences and Permits Issued or Renewed”, in the latest third quarter 2023 report of NERC, it stated that 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 issued, the commission stated: “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.”

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 said.

Persecondnews recalls that Nigeria generates between 3,500MW and 5,000MW of electricity for more than 200 million population, a development that has been described as poor for Africa’s biggest economy.

On Monday, for instance, the country’s power generation at 6am was 4,357.09MW. Peak power generation the preceding day was 4,579.5MW, while off-peak power generation on the same day was 4,062.98MW. Many parts of Nigeria, particularly rural communities experience blackouts due to the country’s meagre power generation.

In June 2023, Nigeria was designated the country with the largest number of people lacking access to electricity, as 86 million of its over 200 million population were living without electricity as of 2021, according to a joint report by some international agencies.

However, the Federal Government and operators in the power supply space have been making efforts to increase the country’s electricity output over the years, which led to the privatisation of the successor generation and distribution companies in November 2013.

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.