Thirteen new companies have been granted licenses for electricity generation and distribution in Nigeria, as well as for the trading of electricity. Daybreak Power Solutions Limited received eight of the new licenses, while others were granted to Olokiti Power Distribution Limited, Ember Power Limited, Energy Company OF Nigeria Limited, and Ekiti IPP Limited.
The Nigeria Electricity Regulatory Commission (NERC) made this announcement in their recently released Third Quarter 2023 Report. The report revealed that five new off-grid generation licenses capable of generating 8.81MW were issued, along with one new license for embedded generation of 5MW.
The report goes on to explain that the NERC issues licenses for various activities involved in the Nigeria Electricity Supply Industry, such as electricity generation, transmission, distribution, trading, and system operations. The commission also issues permits to operators for activities that do not require licenses, such as off-grid captive power generation and mini-grid development.
The issuance of these licenses by the government through NERC will help to improve the country’s power supply and reduce the number of people without access to electricity. Daybreak Power Solutions Limited received eight licenses for various off-grid power generation projects in Lagos, Abia, Borno, Kano, Oyo, and Abuja. Ekiti Independent Power Project was also granted a license for the development of a gas-fired 5MW embedded power project in Ekiti State.
Olokiti Power Distribution Limited received an Independent Electricity Distribution Network license that would be operational in Ekiti State, while Ember Power Limited was granted an electricity trading license. Island Power Limited received a license for the development of a 10MW embedded gas-fired power project in Lagos, and Energy Company of Nigeria Limited was granted an Independent Electricity Distribution Network license that would be operational in Lagos State.