Due to the persistent instability of Nigeria’s power supply, many Nigerians have resorted to self-generating electricity through Renewable Energy Systems (RES). A significant number of these users now produce more electricity than they require, resulting in excess generation that ultimately goes to waste. This reality has intensified calls for a clear regulatory framework to enable the integration of RES into the national grid.
Section 113 of the Electricity Act imposes a continuing obligation on NERC to promote the distribution and supply of electricity from renewable sources. Exercising its powers under the Act, NERC has issued the Draft Net Billing Regulations, intended to serve as the framework for integrating RES into the grid, and has invited stakeholder for comments.
In this newsletter, we highlight the key provisions of the Draft Regulations and provide observations on areas where enhancements and further clarification may be required.
