Académique Documents
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01 Background/Legal Authority
02 Objectives of Eligibility
03 Eligibility and the New Market
04 Issues on the Consultation
05 Mini-grid Regulation
06 Impacts
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Background/ Legal Authority
S(27) of EPSR Act 2005 provides that the Minister may issue a directive
to the Commission specifying the class or classes of end-users that,
from time to time, shall constitute eligible customers.
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What is Eligibility?
END-USERS
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Who Qualifies for Eligibility?
01 02
11KV/33KV
End User Connected 132KV/330KV End User Connected Directly on 33KV Network
03 04 >2MW
IPP
Successor GENCOs
IPP
Successor GENCOs
NIPPs capacity
Bilateral
Contract
Extra capacity
Contracts NIPPs Bilateral
capacity
Contract
Contracts
PPAs
PPAs
PPAs
Bilateral Contracts
PPAs
NBET
NBET
Contracts
Vesting
Contracts
Vesting
DisCos
Eligible
DisCos
Eligible Customer
Customer 6
Objectives
Generation licensees may benefit from stable operation and efficiency due
to the flatter load profiles of eligible customers and possible lower
technical losses depending on the required interconnection
Eligibility will allow successor GenCos with excess capacity over and
above their contractual capacity with Nigeria Bulk Electricity Trading to
access underserved customers thus improving the financial liquidity of the
industry.
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Issues
Stakeholders comments received covered the following broad issues:
Third Party Access (TUOS & DUOS pricing)
Loss of Customers and Revenue
Tariff Rebalancing
Competition Transition Charges
Metering Requirement
System Operations
Proposed phasing of implementation
Contracting Parties
Appropriateness of Threshold and Implementation timelines
Appropriate Process for Exit, Notification and Switching Rules
Determination of stranded costs, exit fees and standby charges
Determination of consumption threshold for eligibility criteria
Provider of Last Resort in the event of third party failure be addressed
Proportion of new generation capacity to be contracted by Eligible Customers
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SUMMARY OF THE MINI-GRID REGULATION
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WHY REGULATING MINI-GRID?
Slide 10
Barriers to Private Investment in Rural Electrification
Investors concerns
Expansion
Stranded Profitability
scope Will cost reflective
investment Will competitors tariff be allowed ?
Would the main grid steal good
arrive too soon? contiguous sites ?
consumers concerns
Safety
Would the mini-grid Affordability
operate at the required
Reliability Will it be not be too
safety standards How reliable is small expensive ?
scale utility ?
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Removing the Barriers
How does the mini-grid regulation Address these
concerns ?
Permit
Streamlined for projects >100kW and < 1 MW
Voluntary for projects < 100 kW
Exclusivity period : legal right to reserve a site subject to
demonstrating progress
Tariffs: permission to charge cost-reflective tariffs
Provides for
Quality of service
Dispute resolution framework
Options when main grid arrives
Slide 12
WHAT IS A MINI-GRID?
Isolated Mini-grid <100
A mini-grid, in the context kW
of rural electrification, is
an integrated Only registration required but may opt for a permit
decentralized local
generation, transmission Isolated mini-grid
and distribution system >100kW and <1MW
serving numerous
endusers that stand on its Requires permit and minimum network standards
own separated from the
national grid with an Interconnected Mini-grid
installed generation >100kW and <1MW
capacity below 1MW
Requires permit and minimum network standards
ISOLATED MINI-GRID <100KW
With No permit
With a permit
Mandatory Registration with Voluntarily elect to
NERC obtain a permit
Sign Exclusivity
2 agreement
All documents are uploaded on the online tool on the Commissions website
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Arrival of Disco network
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Screenshot of the Homepage
Access to the Developer Page
Search Engine
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Mini-Grid Developer Space: Application Process (2/3)
NERC receives a notification and has, according to the regulation, 30 working days to process the
application.
If the request is not approved, the developer is informed per email with a justification (e.g. document not compliant,
wrong information in a form). The developer can then make the necessary adjustments and submit the request again.
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THANK YOU
Contact us at:
Adamawa Plaza, Plot 1099 First Avenue,
Off Shehu Shagari Way,
Central Business District,
Abuja
Website: www.nerc.gov.ng
E-mail: info@nerc.gov.ng
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