The House of Representatives has passed for second reading a bill seeking to establish a National Authority for Renewable Energy (NARE).

The proposed authority would coordinate renewable energy development and regulation, taking over key responsibilities currently shared by existing power-sector agencies.

The Electricity Act (Amendment) Bill, 2025, sponsored by the lawmaker representing Ogbaru Federal Constituency, Anambra State, Afam Victor Ogene, received the legislators’ backing on Thursday.

Ogene, chairman of the House Committee on Renewable Energy, said the bill would transfer renewable energy functions from the Nigerian Electricity Regulatory Commission (NERC), the Rural Electrification Agency (REA) and the Rural Electrification Fund (REF) to the proposed authority.

“This specialisation will improve coordination, reduce institutional overlaps and provide focused direction for the effective development of the renewable energy sector,” he said.

Under the proposed law, NARE would promote mini-grids and off-grid electricity systems in rural communities, underserved areas and island settlements with limited access to reliable power.

Its responsibilities would also cover licensing, industry standards, tariff fairness and dispute resolution. The authority would support investment, local manufacturing, research and technical training across renewable energy technologies, including solar, wind, hydro, geothermal, biomass and hydrogen.

The bill also proposes allocating 40 per cent of the Rural Electrification Fund’s annual resources to NARE to finance renewable energy projects.

Ogene said Nigeria needed alternatives to expanding the national grid alone, particularly for communities and businesses beyond reliable grid coverage.

“We must embrace innovative, decentralised and renewable energy solutions that can reach communities and businesses more efficiently,” he said.

Following deliberations, the House unanimously passed the Renewable Energy Regulation Bill for second reading and referred it to the relevant committee for further scrutiny.

The committee will examine the proposed transfer of personnel, assets and ongoing projects, as well as the authority’s funding arrangements and relationship with existing agencies.

The bill comes amid efforts to expand electricity access through alternative energy sources. Its provisions, if enacted, would reshape how Nigeria coordinates renewable energy development and regulation.