The Nigerian Electricity Regulatory Commission has officially adopted the African Forum for Utility Regulators mini-grid Tariff Tool. This tool, developed in collaboration with AFUR and various stakeholders, aims to streamline the process of setting cost-reflective tariffs for mini-grid projects, ensuring fair pricing. It also introduces new features like Portfolio Applications to simplify registration for developers, promote efficient oversight, and reduce end-user tariffs.
The commission plans to implement this tool in 30 African countries to establish regulatory consistency in the mini-grid sector, facilitating operations for developers across different jurisdictions. Mini-grids are localized energy grids that supply power to specific communities using renewable sources like solar, wind, and hydro. The adoption of this tool by mini-grid developers is mandatory starting December 16, 2024, to enhance regulatory standards and promote affordable electricity access.
The utilization of mini-grids is seen as a solution to Nigeria’s power challenges, especially with the recurrent issues faced by the national grid. The Rural Electrification Agency’s initiative, which has already established over 100 mini-grids nationwide, aligns with the amended Mini-Grid Regulations 2023 set by the NERC. This move is expected to boost the renewable energy sector and improve the overall electricity supply in Nigeria if effectively executed.