By DAYO ADESULU
The Nigerian Electricity Regulatory Commission (NERC) has officially adopted the African Forum for Utility Regulators (AFUR) Mini-Grid Tariff Tool, marking a significant step in advancing mini-grid development and improving electricity access in Nigeria. The announcement was made through a statement on the commission’s official X (formerly Twitter) handle on Friday.
Key Benefits of the Tool
NERC emphasized that the tool was developed in collaboration with AFUR and key stakeholders to streamline the determination of cost-reflective tariffs for mini-grid projects, ensuring fair and efficient pricing for all parties involved.
“The tool supports the implementation of the amended Mini-Grid Regulations 2023 by introducing new features such as Portfolio Applications, allowing developers to register multiple mini-grid sites under a single application,” NERC stated. This approach simplifies administrative processes, enhances regulatory oversight, and achieves economies of scale, resulting in reduced end-user tariffs.
Additionally, the tool is designed to foster regulatory consistency across jurisdictions, facilitating operations for mini-grid developers. It is expected to be rolled out in 30 African countries over the next few years, further strengthening the mini-grid subsector across the continent.
Mandate for Implementation
NERC has mandated all mini-grid developers to adopt the AFUR Mini-Grid Tariff Tool for filing permit applications with the commission starting Monday, December 16, 2024.
Mini-Grids: A Solution to Nigeria’s Power Crisis
Mini-grids, which are small-scale energy systems designed to supply electricity to specific communities or consumer groups, often operate independently of the national grid. These systems commonly utilize renewable energy sources such as solar, wind, hydro, and biomass, making them a sustainable solution to Nigeria’s persistent power challenges.
Experts believe that mini-grids will play a critical role in mitigating the country’s energy crisis, especially as the national grid continues to experience frequent breakdowns. According to the Rural Electrification Agency, approximately 103 mini-grids have already been developed across Nigeria under the Nigeria Electrification Project initiative.
Future Implications
This initiative aligns with the amended Mini-Grid Regulations 2023 and NERC’s broader vision for improving electricity supply in Nigeria. If effectively implemented, it has the potential to drive significant growth in the renewable energy sector, lower electricity costs for underserved communities, and enhance overall energy reliability.
NERC also plans to collaborate with agencies like the Rural Electrification Agency and the National Identity Management Commission to refine the regulatory framework for mini-grids. This includes cleaning up the voters’ register, advocating for affirmative action to include marginalized groups, and intensifying public education to combat misinformation in the energy sector.
The adoption of the AFUR Mini-Grid Tariff Tool underscores NERC’s commitment to modernizing Nigeria’s energy infrastructure and providing reliable and affordable electricity to all citizens.
This revision presents the information in a structured and engaging format, highlighting the significance of the tool and its implications for Nigeria’s energy sector
