Electricity: NERC adopts new tariff for mini grids

NERC

Electricity: NERC adopts new tariff for mini grids

The Nigerian Electricity Regulatory Commission (NERC) has announced its formal adoption of the African Forum for Utility Regulators (AFUR) mini-grid Tariff Tool, “to ensure fair and efficient pricing”.

In a statement the NERC issued on its official X page on Friday, it was noted that the tool was developed through a collaboration between the commission and the AFUR, as well as other key stakeholders in the energy sector.

The AFUR mini-grid tariff tool supports the implementation of the amended Mini-Grid Regulations 2023 and would enhance the process of determining cost-reflective tariffs for mini-grid projects.

The commission further noted that the tool has new features such as Portfolio Applications, “which allows developers to register multiple mini-grid sites under a single application.”

“This simplifies processes, fosters efficient regulatory oversight, and benefits from economies of scale, helping to reduce end-user tariffs for mini-grid projects,” it added.

About Mini-Grids

A mini-grid is a small-scale, local energy grid that provides electricity to a specific community, village, or group of consumers.

It is typically designed to operate in isolation from the main national grid and to serve a limited number of consumers.

Mini-grids are often built to explore renewable energy sources such as solar, wind, hydro, and biomass.

Experts say the development of mini-grids will help mitigate Nigeria’s power crisis, especially as the national grid suffers persistent breakdowns.

Last year, the Rural Electrification Agency (REA) said it had built about 103 mini-grids across the country through the Nigeria Electrification Project (NEP) initiative.