THE Nigerian Electricity Regulatory Commission (NERC) has approved a new regulation, which hopes to stimulate investment in renewable energy sources and generate at least 2000mw by the year 2020.

The law, Feed-in Tariff Regulations for Renewable Energy Sourced projects that Nigeria would generate at least 1,000 megawatts from renewable energy sources by 2018.

Renewable sources are electricity generated from biomass, small hydro, wind and solar energy sources.

Chairman of NERC, Dr. Sam Amadi said in Abuja at the weekend: “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.”

He said that the regulation expects electricity distribution companies to procure 50 per cent of the projected renewable sourced electricity, while the Nigerian Bulk electricity Trading Company (NBET) is expected to procure the balance of 50 per cent.

The law specifies capacity for renewable plant should between 1mw and 30mw. Plant above this threshold will require additional conditions other than those already specified in the regulation.

“The provisions of these regulations shall apply to all qualifying renewable energy sourced electricity of capacity above 1megawatt and smaller than 30mw at a site that is connected to the transmission grid or the distribution networks.

“For large renewable (30mw above) integrated resource planning will be carried out before the NERC will initiate a competitive bid process.”
The buyer will after this solicit bids and purchase at the most cost effective based on the optimal technology available at the location.

The law allots maximum amount of renewable sourced electricity an electricity distribution can have on its network based optimal potential available in their franchised areas.

This provision of the law is to achieve right mix of energy for the DISCO as well as protect electricity consumers from spike in tariff.