HomeBUSINESS13 Power Generation and Distribution Licences Unveiled by  FG!

13 Power Generation and Distribution Licences Unveiled by  FG!

In transforming the power landscape, the Federal Government issued 13 new licenses in the third quarter of 2023. These licenses cover electricity-related activities, which are off-grid and embedded power generation, independent electricity distribution and trading of electricity. This is a significant step towards the energy sector. 

Under the section titled ‘Licenses and Permits Issued or Renewed’ in the current NERC report, we discover some notable things. During the review period, the commission granted five off-in-gridgrid generation licenses that can generate 8.81 megawatts of power. That’s a great increase in electricity generation in the country! 

Additionally, a license for embedded generation, capable of producing 5 megawatts has been issued. The numbers speak for themselves. 

Also, the Federal Government and NERC didn’t stop there. Alongside these licenses, they also issued a license for independent electricity distribution, a license for trading, three more off-grid generation licenses, one embedded generation license and one IEDN license. 

NERC emphasized that they issue licenses for various activities in Nigeria’s Electricity Supply Industry, which are transmission, generation, trading, distribution and system operations. 

Furthermore, they are actively encouraging the development of off-grid captive power generation and mini-grid projects by passing permits to operators after carefully reviewing their applications. The commission ensures expanded access to electricity across the nation. 

Nigeria has faced significant challenges in its power sector, with widespread blackouts and a large portion of the population lacking access to electricity. 

However, these new licenses are a great milestone in the country’s efforts to address these issues. The government, alongside power operators, has been tirelessly working for the increment of electricity output, even privatizing generation and distribution companies in 2013. Now, with the issuance of these licenses, there is renewed hope for a brighter future. 

These licenses that were granted include, Daybreak Power Solutions Limited has secured eight licenses for many off-grid projects situated in Lagos, Abia, Borno, Kano, Oyo, and Abuja. 

Meanwhile, the Ekiti Independent Power Project has been given the green light to develop a promising gas-fired 5MW embedded power project In Ekiti State. Moreover, Olokiti Power Distribution Limited has received a changing Independent Electricity Distribution Network license to serve Ekiti State with reliable power. 

In addition, Ember Power Limited has been granted an electricity trading license, opening up new possibilities for energy commerce. Island Power Limited on the other hand set to embark on an exciting venture in lagos to develop a notable 10MW embedded gas-fire power project. 

And let’s not forget the Energy Company of Nigeria Limited that has obtained an Independent Electricity Distribution Network License serving the power needs of Lagos State. It’s an electric lineup of projects. 

As challenges persist in the power sector, this latest development is a great step in the right direction. The government, NERC, and power consumer groups all recognize the urgency to deliver reliable electricity to all Nigerians. With these new licenses, the nation’s power supply is poised for exponential growth, promising a brighter and more electrified future for all. 

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