The NERC (Nigerian Electricity Regulatory Commission) has approved a new regulation that aims to generate upto 2000MW of electricity from renewable energy sources in the next five years.
The adoption of the new law called feed-in tariff regulations for renewable energy sourced electricity in Nigeria was approved at the last regulatory meeting of the NERC.
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With the new regulation, NERC expects to attract investments in the power sector.
Under the new regulation, electricity distribution companies will procure 50% of the projected renewable sourced electricity and the rest will be procured by Nigerian Bulk electricity Trading Company (NBET).
It also mentions that the capacity for renewable plant for use in the sector should be between 1 and 30MW and the plants above which require more than that will require additional conditions.
The commission stated it would help the country generating at least 1000MW of electricity from different renewable energy sources by 2018 and the rest of requirement would be met by 2020.
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By GlobalDataNERC chairman Sam Amadi was quoted by This Day Live as saying: "With this regulation, we have been able to unlock further investment potentials in the country’s power sector.
"Its major objective is to diversify our sources of electricity and take advantage of our options."
In order to have a balance of energy for the discos and save electricity consumers from tariff hike, the commission has included this clause in the law.
The commission also cited that Kaduna and Kano discos have highest allotments of solar sourced electricity.
At present, the country generates 4516MW from thermal and hydro power plants.
