The Nigerian Electricity Regulatory Commission (NERC) has issued a directive requiring electricity Distribution Companies (Discos) to secure a minimum of 398 megawatts (MW) of embedded generation. This move is aimed at improving the reliability of power supply across Nigeria.
Embedded generation, often referred to as distributed generation, involves power plants that are connected to distribution networks rather than the national grid. This initiative is part of the September 2024 Supplementary Order to the Multi-Year Tariff Order, and it mandates that all 11 Discos in the country procure at least 10% of their 2024 load allocation from embedded generation.
For instance, Kano Electricity Distribution Company must secure 27MW, with 50 percent of this capacity required to come from renewable energy sources, to enhance service delivery under the Service-Based Tariff system. Other Discos, including Port Harcourt (28MW), Yola (11MW), Abuja (61MW), Ikeja (60MW), and Eko (51MW), have also been given specific generation targets.
This directive is part of broader efforts to address Nigeria’s persistent power supply challenges, ensuring a more reliable and sustainable electricity distribution network.
