The Nigerian Electricity Regulatory Commission has mandated electricity Distribution Companies to procure a minimum of 398MW of embedded generation to enhance the reliability of power supply across the country.
Embedded generation (also known as distributed generation or distributed energy resources) refers to electricity generation or storage plants connected to a distribution network rather than the transmission network or the national electricity grid.
The NERC’s directive is contained in the September 2024 Supplementary Order to the Multi-Year Tariff Order 2024, which applies to the 11 Discos in Nigeria.
Under the order, each Disco is required to secure 10 per cent of its 2024 load allocation from embedded generation sources. This measure is expected to address supply issues and improve electricity delivery to consumers.
For instance, in the case of Kano Disco, the commission said, “Kano Disco is obligated by this order to procure a minimum of 27MW capacity of embedded generation, being 10, of its 2024 load allocation, to improve supply reliability and sustain delivery of a minimum service level under the SBT (Service Based Tariff).”
