The Nigerian Electricity Regulatory Commission (NERC) has directed electricity Distribution Companies (Discos) to procure a minimum of 398MW of embedded generation as part of efforts to improve the reliability of power supply across the country.
Embedded generation, also referred to as distributed generation, involves electricity generation or storage plants connected directly to distribution networks rather than the national grid, offering an alterative means to boost energy availability.
The mandate was outlined in NERC’s September 2024 Supplementary Order to the Multi-Year Tariff Order (MYTO) 2024, which is applicable to the 11 Discos operating in Nigeria.
The order stipulates that each Disco must secure at least 10% of its 2024 load allocation from embedded generation sources, a move expected to address supply constraints and enhance electricity delivery to consumers.
For instance, Kano Disco is now required to procure a minimum of 27MW of embedded generation, representing 10% of its load allocation for the year, to improve supply reliability and maintain the minimum service level under the Service-Based Tariff (SBT) system.
This initiative aims to strengthen the Nigerian electricity sector by decentralizing generation, reducing dependence on the national grid, and providing more consistent power to homes and businesses across the country.
