NNPCL, NRS, 21 others get nod to generate 1,182.98MW electricity in 2025

As Nigerians continue to grapple with epileptic power supply from the national grid, the Nigerian Electricity Regulatory Commission (NERC) has granted approval for 23 companies to generate 1,182.98 Mega Watts (MW) of electricity in 2025. According to analysis of NERC’s quarterly reports, the approval was granted under “captive power generation permit,” with 31 licences given […]

As Nigerians continue to grapple with epileptic power supply from the national grid, the Nigerian Electricity Regulatory Commission (NERC) has granted approval for 23 companies to generate 1,182.98 Mega Watts (MW) of electricity in 2025.

According to analysis of NERC’s quarterly reports, the approval was granted under “captive power generation permit,” with 31 licences given to the 23 companies.

The report explained that captive power generation permits are issued to entities that intend to own and maintain power plants exclusively for their consumption and have no intention to sell any electricity generated from the plant.

Daily Trust reports that there has been a mass exodus from the national grid by industrial consumers as it becomes unreliable.

Also, the 1,182.98MW granted to the companies is a quarter of what the country generates from the national grid, which shows that Nigerians are critically in need of more electricity generation to fulfil their daily needs.

Analysis of the quarterly reports showed the first quarter saw the highest number of approvals with 16 applicants granted permits with the aim to generate 953.89MW of electricity.

In the second quarter, only a single permit was approved for the Nigerian National Petroleum Company Limited NNPC for the operation of a 20.8 MW plant at NNPC Towers in Abuja.

While in the third quarter, three companies were granted permits—Sequoia International Development Ltd, Yinson Operations & Productions West Africa Ltd, and Azura Power West Africa Limited—seeking to generate a total of 72.10MW.

In the fourth quarter, the permits were issued to 11 applicants, including companies like Abuja Steel Mill Nigeria Limited (50 MW) and Yongxing Steel Company Ltd (45 MW), for a total sought capacity of 136.19MW.

The companies that were given permits during the year included: Nile University of Nigeria, CCK Electric Power Tech. Company, Pulkit Alloy And Steel Limited, Everest Pulp and Paper Limited, Cement Company Limited (BUA), Nigeria Pipes Limited, African Container Terminal Nigeria Ltd Seaport, Kwale Genco FZE, NNPCL.

Others included Sequoia International Development Ltd, Yinson Operations & Productions West Africa Ltd, Azura Power West Africa Limited, Wihi, Nigeria Revenue Service, Yongxing Steel Company Ltd, Accugas Limited, Abuja Steel Mill Nigeria Limited, T&D West Africa Limited, Vinylon Footwear Industry Limited, Nigerian Spanish Engineering Limited.

Also, Standard Plastic Industry Nigeria Limited, Watson’s Bakery Nigeria Limited and Superior Eva Footwear Nigeria Limited.

8 firms granted permits to construct 64 mini-grids

The reports also showed that NERC issued a total of 64 mini-grid permits to 8 different companies, with a combined total capacity of 17.06 MW during the year.

According to NERC, the permits were granted “in pursuant to section 164(m) of the EA 2023 which states that the commission shall award licence of mini-grid concessions to renewable energy companies to exclusively serve a specific geographical location indicating aggregate electricity to be generated and distributed from a site with obligation to serve customers to request service.”

It added that the commission continues to encourage the development and utilisation of renewable energy by issuing permits and registration certificates for mini-grid development.

It added that a permit is issued to a mini-grid developer for the construction, operation, and maintenance of mini-grids with a distribution capacity exceeding 100kW and a generation capacity of up to 1MW.

“The commission also issues registration certificates to developers for systems with a distribution capacity below 100kW.”

Quarterly analysis showed it issued seven permits to one company (Nebular Engineering Limited) with a gross capacity of 1.26 MW.

In Q2, six permits were issued to two companies, Husk Power Energy Systems Nig Limited and Nayo Tropical Technology Limited, with a gross capacity of 1.54MW

For Q3, 20 permits were issued to one company (Havenhill Synergy Limited) with a gross capacity of 5.89MW while Q4 saw 31 permits issued to four companies with a gross capacity of 8.37MW.