NERC Licenses 4 Firms, Targets 774mw Electric Power Generation

Following efforts to ensure steady power supply in the country, the Nigerian Electricity Regulatory Commission (NERC) yesterday issued licences to four different companies for the generation of a total of 774 megawatts (mw) having satisfied extant regulations on licence application.

They include Nigeria Solar Capital Partner, 100mw solar plant at Ganjuwa, Bauchi State, Proton Energy, 150mw at Ogorode, Delta State, Turbine Drives, 500mw at Ajaokuta, Kogi State and Pan Africa 24mw solar project at Kankia, Katsina State.

This comes as the commission said it would revoke of all non-performing power generation licences issued to investors.

The chairman of the NERC, Dr Sam Amadi, said the licences are meant to address the plight of consumers by ensuring more megawatts that is fairly and reliably distributed to every customer’s home and business.

Speaking during the event in Abuja, the NERC commissioner, Engineering, Ibrahim Abba, explained that each licence is accompanied by terms and conditions and certain milestones that must be achieved within a certain time limit.

He added that “going forward we are going to tighten the screw regarding licencing in Nigeria. We have no choice but to revoke certain licences because they are not performing. That’s the only way we can send the right signal to people across the world to come and invest in Nigeria.”

Explaining further, the NERC commissioner, Legal, Steven Andzenge, noted that upon the issuance of a licence, it is expected that within 36 months substantial steps would have been taken to reach project closure or commissioning. He lamented that although the NERC started issuing generation licences in 2006 most of them have not moved beyond the issuance of licence.

To address complaints by licencees about negotiating power purchase agreement, he said the commission in 2011 issued a licence to the Nigerian Bulk Electricity Trading company (NBET) which is expected to purchase power.

“We have also licensed embedded generators and the distribution companies are encouraged to buy power from embedded generators, so any licensee who is serious doesn’t have any challenge again regarding who is going to be an off taker of his power.

“So if you have gotten the license and haven’t taken steps there’s no basis why we should continue to have you on our website as a licensee of the commission giving a wrong impression that we have licensed so many people when the power is not there. We will follow the procedure and we will go ahead and revoke the license,” Andzenge stated.