NERC issues licences for 953MW alternative energy

NERC issues licences for 953MW alternative energy

The Nigerian Electricity Regulatory Commission (NERC) says it gave out licenses to companies aiming to generate electricity from alternative energy in the first quarter of 2025.

NERC in its Q1 report said 16 licenses were issued for Captive power amounting to 952.64MW with licenses for 4 mini-grids grid to generate 1,259MW of electricity.

They stated that captive power generation permits are issued to entities that intend to own and maintain power plants exclusively for their consumption, i.e. no sale of electricity generated from the plant to any third party.

The report added that electricity Distribution Companies (DisCos) made a cumulative revenue loss of N200.495bn during the period.

They however stated they made a total revenue of N553.63bn out of N744.27 billion billed to their customers.

“This translates to a collection efficiency of 74.39%, representing a decrease of 3.05pp compared to 2024/Q4 (77.44%).

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It explained that the revenue loss was due to  Aggregate Technical, Commercial and Collection (ATC&C) loss which is a summation of billing losses incurred by a DisCo due to its inability to bill 100% of energy delivered to customers and  collection losses arising from the DisCo’s inability to collect 100% of the bills issued to customers.

“The weighted average ATC&C loss across all the DisCo in 2025/Q1 was 39.61%, comprising technical and commercial loss (18.82%) and collection loss (25.61%). The ATC&C loss of 39.61% is 19.07 percent higher than the 2025 MYTO target (20.54%) and translates to a billion across all DisCos.

It added that due to the absence of cost-reflective tariffs across all DisCos, the federal government incurred a subsidy obligation of N536.40bn.

It added that the six  international bilateral customers being supplied by GenCos in the NESI made a payment of $5.80 million against the cumulative invoice of $17.23 million issued by the for services rendered in 2025/Q1, translating to a remittance performance of 33.70%.

The domestic bilateral customers made a cumulative payment of N1.85bn against the invoice of N2.57bn issued to them by the MO for services rendered in 2025/Q1, translating to 72.24% remittance performance. It is noteworthy that some domestic bilateral customers made payments during 2025/Q1 for outstanding MO invoices from previous quarters. The MO received N64.06m from the domestic bilateral customers [NDPHC-Weewood; N28.63m, North-South/Star Pipe; N10.41m and Trans-Amadi (OAU/FMPI); N25.01m towards outstanding invoices from previous quarters.

NERC issues licences for 953MW alternative energy