REA chief says updated NERC regulations will unlock faster project delivery, bigger investments, and electricity access for millions in underserved communities…..
Nigeria’s push to expand electricity access through renewable energy has received a major boost following the release of updated mini-grid regulations by the Nigerian Electricity Regulatory Commission (NERC).
The Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, described the new framework as a defining moment for the country’s energy sector one that could dramatically accelerate project rollout and attract fresh investment into off-grid power solutions.
According to Aliyu, the regulation is the result of sustained engagement between the REA and NERC over the past two years, involving technical input and policy advocacy aimed at removing long-standing bottlenecks. He noted that previous regulatory constraints often slowed down project execution and discouraged investors, despite growing demand for reliable electricity in rural and peri-urban areas.
With the revised rules, that narrative is expected to change. Aliyu said the framework reflects a shift toward scalability and innovation, aligning policy with the realities faced by developers working on the ground. The ultimate goal, he added, is to expand access to millions of Nigerians who remain outside the reach of stable power supply.
He also acknowledged the leadership of NERC Chairman, Musiliu Oseni, commending the commission’s willingness to collaborate with industry stakeholders to deliver reforms that address real-world challenges.
For developers involved in flagship initiatives such as the Distributed Access through Renewable Energy Scale-up (DARES), the Nigeria Electrification Programme (NEP), and the Energising Education Programme (EEP), the implications are immediate. The new rules are expected to reduce administrative delays and enable faster deployment of infrastructure across underserved communities.
One of the most significant changes is the expansion of capacity limits. Isolated mini-grids can now generate up to 5 megawatts per site, up from the previous 1 MW cap while interconnected systems can operate at up to 10 MW. This allows developers to build more robust systems without being subjected to the more complex regulatory requirements designed for large-scale utility plants.
Equally transformative is the introduction of a unified permitting system. By consolidating generation, distribution, and supply approvals into a single permit, the regulation eliminates the need for multiple licenses, a process that previously added time and cost to project development.
The framework also introduces clearer environmental compliance pathways tailored for solar photovoltaic and battery storage systems, along with defined timelines for project commissioning. These measures are designed to ensure that completed projects move swiftly from construction to delivering electricity.
Under the updated rules, mini-grids are defined as electricity systems capable of generating and distributing power to multiple users, either independently or in coordination with an existing distribution network, within specified capacity limits.
For isolated mini-grids, permits will be granted in designated unserved areas, provided the projects do not conflict with existing expansion plans of distribution companies or where such plans lack firm commitment. Developers must also meet requirements related to community engagement, technical standards, safety, and tariff structures.
Interconnected mini-grid projects, on the other hand, will require a tripartite agreement involving the host community, the developer, and the relevant distribution licensee. This agreement must be submitted to the commission, which will then assess and approve the project based on established tariff models.
Aliyu emphasised that the reforms mark a turning point, shifting the focus from regulatory hurdles to actual delivery. With clearer guidelines and fewer administrative barriers, developers can now prioritise building systems that meet the growing energy needs of Nigeria’s underserved populations.
As implementation begins, stakeholders across the sector will be watching closely to see how quickly these changes translate into tangible improvements in electricity access, especially in communities that have long waited for reliable power.
