The Federal Government of Nigeria has mandated electricity distribution companies in Nigeria to acquire a minimum percentage of electricity from renewable energy sources.
The Nigerian Electricity Regulatory Commission (NERC) recently approved feed-in tariff regulations for renewable energy sourced electricity. As for the provisions of the regulations, electricity distribution companies will be required to source at least 50% of their total procurement from renewable energy sources.
The Commission has also mandated that the remaining 50% electricity would have to be sourced from the Nigerian Bulk Electricity Trading Company (NBET).
The commission has also defined the projects which would be allowed to sell the eligible renewable energy under this mandate. Electricity procured from projects with capacity between 1 Megawatts and 30 Megawatts would be recognized as power from renewable energy. Renewable energy projects with over 30 MW capacity would have to fulfil some additional requirements. Provisions for auction of such large projects have also been included in the regulations.