Nigeria has enacted a new law decentralizing electricity power, granting 10 states control over their power markets. This move aims to address the persistent issue of national grid collapses and power outages that have plagued the country. The law allows states to manage generation, transmission, and distribution within their boundaries, potentially leading to increased competition and improved service quality.
Perpetual power cuts have become the sign of a struggling electricity industry in Nigeria, worsening the frustrations of businesses amid copious national grid collapses.The new law repealed the Electricity and Power Sector Reform Act of 2005, consolidating the regulations relating to the Nigerian electricity supply industry .16 constitutional amendments — one of which focused on the devolution of powers related to the national grid.
As part of the transition process, the NERC said DisCos are expected to incorporate subsidiaries which will assume the responsibilities for intrastate supply and distribution of electricity within their region.captive power generation permits totalling a combined capacity of 63.36 megawatts to various institutions, allowing them to generate electricity exclusively for their use.
However, Olubiyo said over the next 11 years, the national power grid has failed to add more than 400MW as peak transmission and distribution remain at 6,000MW. This, the NCPN president said, would result in higher taxes from more working-class citizens, improving living standards through increased disposable incomes.
He said the reform presents many opportunities, as states now have the freedom to develop solutions that suit their needs, utilising available resources, including offering incentives to investors.
Technology ELECTRICITY DECENTRALIZATION NIGERIA POWER GRID RENEWABLE ENERGY
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