HomeIndustry SectorsGenerationNigeria formalises independent power generation

Nigeria formalises independent power generation

Government power
plant “’ now independent
power producers will be
Abuja, Nigeria — 09 March 2012 – Determined to address the nation’s power challenge, the federal government of Nigeria, through the Nigerian Electricity Regulatory Commission (NERC), has signed into effect regulations for two critical licence types that would allow independent interests to generate and distribute power.

Citing local publication “Leadership,” allAfrica.com explains that the regulations present a clear legal and regulatory framework specifically for Embedded Generation (EG) and Independent Electricity Distribution Network (IEDN).

The EG licence allows the generation of electricity that is directly connected to and evacuated through a distribution system connected to a transmission network operated by a system operations licensee, while the  IEDN licence allows for a distribution network to be located within the operational area of a distribution network owned and operated by a licensed successor distribution company.

Speaking during the signing ceremony here, NERC Chairman, Sam Amadi noted that state governments, and even individuals, could no longer complain of being shut out of the power generation market.

“With this regulation, we can actually allow distribution companies (DISCOs) to contract power around themselves, thereby increasing power supply, and to reduce losses and address issues of stability,” he said.

Amadi maintained that the regulations were important for States that were concerned with rural electrification, pointing out that a significant part of the country was yet to be connected to the grid.

Source: allAfrica.com. For full item click here.