The Nigerian Electricity Regulatory Commission has directed electricity Distribution Companies to procure at least 398 megawatts of embedded generation to enhance the reliability of power supply across Nigeria.
According to The PUNCH, embedded generation, also known as distributed generation, involves generating electricity from plants connected directly to a distribution network instead of the national grid or transmission network, offering a decentralized approach to energy distribution.
This mandate is part of the September 2024 Supplementary Order to the Multi-Year Tariff Order 2024, which applies to all 11 Discos in Nigeria.
According to NERC’s directive, each Disco must secure 10 percent of its total 2024 energy load allocation from embedded generation sources to improve supply consistency and electricity delivery.
Kano Electricity Distribution Company for example, is obligated to procure at least 27MW of embedded generation, representing 10 percent of its load allocation for 2024.
NERC emphasized the importance of sourcing renewable energy, stating, “Kano Disco is obligated by this order to procure a minimum of 27MW capacity of embedded generation, being 10% of its 2024 load allocation, to improve supply reliability and sustain delivery of a minimum service level under the SBT (Service Based Tariff). A minimum of 14MW (i.e., 50 percent) of the embedded generation capacity must be sourced from renewable energy sources.”
This initiative is part of NERC’s efforts to address power supply challenges faced by the nation.
The commission has assigned similar embedded generation targets to other Discos: Port Harcourt Disco must secure 28MW, Yola Disco 11MW, Abuja Disco 61MW, Jos Disco 22MW, and Ikeja Disco 60MW. The targets also apply to Ibadan Disco with 48MW, Eko Disco with 51MW, Enugu Disco with 31MW, Benin Disco with 33MW, and Kaduna Disco with 26MW.
By mandating Discos to integrate embedded generation, especially from renewable sources, the regulator aims to improve the overall reliability and sustainability of power delivery across the country, addressing Nigeria’s long-standing electricity supply issues.