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NERC Mandates Discos to Procure 398MW of Embedded Generation to Boost Power Reliability

NERC enforces embedded generation to enhance power supply and reliability across Nigeria.

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.

 

 

 

Vivian Akinyosoye
Vivian Akinyosoye is a seasoned journalist with a background in English Language and a Masters degree in International Law & Diplomacy. She officially began her career in journalism when she joined Channels Television Lagos Nigeria in 2000. Her work in Channels allowed her to hone her skills as a journalist laying a solid foundation for a successful career as a versatile reporter covering Human angle stories, Health, Aviation, Metrofile, Travels, Business and Finance. She served as State House Correspondent Abuja in her early years with Channels TV and has trained at the London Academy for Film, Media and TV. She also served briefly with Silverbird Television Lagos Nigeria before joining African Voices 1 Network Intl (AV1 News) where she currently serves as Lead Editor, Business & Finance.

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