The NERC Regulations for Mini-Grids.

With her energy demand outstripping supply, and transmission constraints and other challenges plaguing her on-grid electricity market, Nigeria has begun to adopt policy initiatives aimed at supporting the commercialisation and rapid deployment of mini-grids across the country, especially in rural and exurban areas.

The recently issued Nigerian Electricity Regulation Commission (NERC) Regulation for Mini-Grids (the Regulations or the Mini-Grid Regulations) outlines a regime for the regulation of mini-grids which is in many ways intended to insulate mini-grid developers from the current challenges of the country’s on-grid electricity market, and designed to promote investment in rural electrification. In the main, the Regulations provide a framework for (i) engagement between mini-grid developers and existing distribution companies, (ii) private retail tariff arrangements for certain operators; and (iii) compensation for developers in the event of operational expansion by the distribution company licensed to cover the relevant community.

Find out more about the Regulations and their implications for the Nigerian Electricity Supply Industry.