The Nigerian Electrical energy Regulatory Fee (NERC) has introduced its formal adoption of the African Discussion board for Utility Regulators (AFUR) mini-grid Tariff Instrument, “to make sure truthful and environment friendly pricing”.
In an announcement the NERC issued on its official X web page on Friday, it was famous that the device was developed by means of a collaboration between the fee and the AFUR, in addition to different key stakeholders within the power sector.
The AFUR mini-grid tariff device helps the implementation of the amended Mini-Grid Rules 2023 and would improve the method of figuring out cost-reflective tariffs for mini-grid initiatives.
The fee additional famous that the device has new options reminiscent of Portfolio Functions, “which permits builders to register a number of mini-grid websites beneath a single utility.”
“This simplifies processes, fosters environment friendly regulatory oversight, and advantages from economies of scale, serving to to cut back end-user tariffs for mini-grid initiatives,” it added.
In response to the fee, the adoption of this device is anticipated to carry regulatory consistency to the mini-grid subsector, making it simpler for venture builders to function throughout jurisdictions.
The device, which is ready to be rolled out throughout 30 African international locations within the coming years, is anticipated to cut back end-user tariffs for mini-grid initiatives, selling inexpensive and dependable electrical energy entry.
NERC has mandated all mini-grid builders to start out utilizing the AFUR mini-grid tariff device to file allow purposes on the Fee from Monday, December 16, 2024.
About Mini-Grids
A mini-grid is a small-scale, native power grid that gives electrical energy to a selected neighborhood, village, or group of customers.
It’s usually designed to function in isolation from the principle nationwide grid and to serve a restricted variety of customers.
Mini-grids are sometimes constructed to discover renewable power sources reminiscent of photo voltaic, wind, hydro, and biomass.
Specialists say the event of mini-grids will assist mitigate Nigeria’s energy disaster, particularly because the nationwide grid suffers persistent breakdowns.
Final 12 months, the Rural Electrification Company (REA) stated it had constructed about 103 mini-grids throughout the nation by means of the Nigeria Electrification Undertaking (NEP) initiative.
What it’s best to know
This improvement is anticipated to boost the regulatory framework for mini-grids, contained within the amended Mini-Grid Rules 2023 of the NERC.
- This will additionally anticipated to boost development within the renewable power sector and enhance electrical energy provide in Nigeria if nicely applied.
- Mini-grid builders should use the AFUR device to file allow purposes from December 16, 2024.
The device is now obtainable for obtain on the Fee’s web site
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