Remarkable Adjustments Made to Promote Renewable Energy-NERC

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The Nigerian Electricity Regulatory Commission (NERC) said that remarkable adjustments have been made to accommodate and promote investments in Nigeria’s renewable energy sector.
The regulatory commission stated this at the recent second edition of Nextier power dialogue in Abuja, identified some of the adjustments to include: a very attractive renewable energy feed-in-tariff, and a regulation that ensures that local electricity distribution companies (Discos) source for up to 50 per cent of their electricity from renewable sources.
The commission also described the long-term cost recovery cycle as another significant incentive to make the nation a choice destination for renewable energy investors.
The acting chairman, NERC, Dr. Anthony Akah, who was represented by the commission’s Deputy General Manager in charge of Renewables, Research and Development, Dr. Haliru Dikko said the country’s challenges with conventional power generation gave renewable energy a perfect condition to become the energy source of choice for consumers.
He stated that though there were still challenges in developing renewable energy projects in the Nigeria, the commission’s regulations had largely improve the challenges and unlocked investment opportunities in the sector.
The acting chairman described the ‘Feed-in Tariff Regulations for Renewable Energy Sourced’ , which targets at least 1,000 megawatts (MW) of electricity from renewables by 2018, and also allotted respective volumes of renewable energy procurement to Ikeja, Ibadan, Eko, Kaduna and Kano Distribution companies, as a remarkable piece of law enacted to woo investments in the sector.

According to Akah, “The Act gave NERC the authority to issues licenses for power generation over 1MW and also empowered NERC to set tariffs for operators.
He added, “NERC had streamlined the licensing process so any applying investor meeting the new requirements would be issued a power generation license expeditiously. Changes have also been made to the feed-in traffic mechanism, and this is important for investments in the market to address the high demand and low supply of electricity in the country.”

Nigeriatoday

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