In Nigeria, the national electricity regulator has stated that it has made some amendments to accommodate and promote investments in the country’s renewable energy sector.
According to local media Nigeria Today, Dr Haliru Dikko, deputy general manager in renewables, research and development at NERC, delivered a presentation on behalf of the agency’s acting chairman, Dr Anthony Akah, at a seminar dedicated to renewables.
During the presentation Akah noted that the current challenges brought about by conventional power generation presented renewable energy perfect conditions to become the energy source of choice for consumers in Nigeria.
Electricity regulator notes the amendments
Among the amendments endorsed by NERC include an attractive renewable energy feed-in-tariff and a regulation that ensures that local electricity distribution companies (Discos) source up to 50% of their power from renewable sources.
Another adjustment will be a long-term cost recovery cycle as additional significant incentive to make the country become a choice destination for renewable energy investors, the electricity regulator noted.
However, Akah admitted that there are still challenges in developing renewable energy projects in Nigeria, adding that the commission’s regulations have basically amended the challenges and unlocked investment opportunities in the sector.
Tariffs for renewables
In his presentation he explained the Feed-in Tariff Regulations for Renewable Energy Sourced, which is targeting at least 1,000MW of electricity from renewables by 2018, and also allotted respective volumes of renewable energy procurement to Ikeja, Ibadan, Eko, Kaduna and Kano Discos.
Akah said: “The Act gave NERC the authority to issue licenses for power generation over 1MW and also empowered NERC to set tariffs for operators.”
He added: “NERC had streamlined the licensing process so any applying investor meeting the new requirements would be issued a power generation license expeditiously.
“Changes have also been made to the feed-in traffic mechanism, and this is important for investments in the market to address the high demand and low supply of electricity in the country.”