Allowing customers to sell excess electricity to national grid will improve supply – NERC

The Nigerian Electricity Regulatory Commission (NERC) has stated that the Net Billing Regulation represents an important step toward enabling prosumers, consumers who generate excess electricity, to inject their surplus energy into the national grid at fair value. Speaking at the Public Consultation on the Draft Net Billing Regulations in Abuja yesterday, NERC’s Commissioner for Research […]

The Nigerian Electricity Regulatory Commission (NERC) has stated that the Net Billing Regulation represents an important step toward enabling prosumers, consumers who generate excess electricity, to inject their surplus energy into the national grid at fair value.

Speaking at the Public Consultation on the Draft Net Billing Regulations in Abuja yesterday, NERC’s Commissioner for Research and Data Analytics, Dr. Yusuf Ali, underscored the commission’s resolve to build a more inclusive, participatory, and forward-looking electricity market.

He explained that the regulation aligns Nigeria with emerging global standards that incentivize private investment in renewable generation while improving grid resilience.

Ali highlighted that NERC is taking a new, more transparent approach by publishing a draft for public review and actively seeking feedback before finalization.

“Stakeholders, including DisCos, NEMSA, state regulators, and development partners, have been invited to provide technical and practical insights to ensure the framework reflects market realities.

“We are not here to defend any document; this is a draft meant to evolve through robust debate. While some believe that Nigeria is not ready for this regulation, we can’t let perfection get in the way of progress.”

He also noted the strong stakeholder turnout—greater than the Lagos session—reflecting rising interest in distributed generation and cleaner energy solutions across the North.

Ali acknowledged the contributions of those who submitted written comments online and commended partners such as GIZ for their ongoing technical support in advancing Nigeria’s energy transition.

Milos Karic, Head of Component, Sustainable Energy Planning and Access, NESP commended NERC’s leadership and noted that the partnership has already supported several landmark achievements — including the Mini-Grid Regulations and the Mini-Grid Application Portal.

He added that under NESP III, GIZ is proud to support the development of the Draft Net Billing Regulation at a time when Nigeria must address grid reliability, electricity access, and renewable energy integration.

“This regulation will empower consumers to become active participants in the energy market and accelerate the adoption of renewable systems across the country. It sends a clear signal to investors and consumers alike that Nigeria is ready to embrace a more reliable and sustainable energy future,” he said.

Godfrey Ogbemudia, Programme Manager for Energy and Circular Economy, Green and Digital Economy Section, Delegation of the European Union to the FGN and ECOWAS, also commended NERC for its leadership and vision. He emphasized that the Net Billing Regulation aligns with the EU’s Green Deal objectives and reflects global best practices adapted to Nigeria’s unique market realities.

“The EU remains deeply committed to supporting Nigeria’s clean energy agenda and working with NERC to promote a stronger market for decentralized energy projects,” he stated.

What you should know

 It would be recalled that NERC had last month announced plans to implement a net metering arrangement that will enable the export of excess power back into the national grid for commercial value.

In a draft document released on its website, the commission had stated that the value of solar panels imported into Nigeria in the first quarter of 2025 was N125.3bn, saying this reflects the increasing adoption of renewable energy.

“In 2023, solar panel imports were valued at over $200m, translating to more than four million panels, with a substantial portion allocated to captive power generation. By Q1 2025, the value of imported solar panels had reached approximately N125.29bn. This expansion reflects the increasing adoption of renewable energy, particularly in rural and off-grid areas, driven by government initiatives and private sector investments,” the commission said.

It added that in 2024, Nigeria added 63.5 megawatts of solar capacity, bringing the total installed capacity to 385.7 MW, further accelerating the shift towards decentralised energy solutions.

 

 

 

With this, NERC said some stakeholders approached it with requests to enable the export of excess power to the grid for commercial use.

 

 

 

The commission said it has developed draft regulations on net billing. Given this expansion, stakeholders have approached the commission with requests to explore the possibility of implementing a net metering arrangement, enabling the export of excess power back into the grid for commercial value.

 

 

 

“In compliance with its business rules and pursuant to Sections 46 and 48 of the Electricity Act 2023, which govern the commission’s proceedings, consultations, and public hearings, the commission has developed draft regulations on net billing.”