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Discos, Gencos, others get approval to supply Ekiti with off-grid electricity

Onwubuke Melvin
Onwubuke Melvin

Ekiti State Government has granted licenses to three electricity distribution companies, four generation companies, and two mini-grid generation companies as part of its strategy to implement an off-grid electricity supply system.

Governor Biodun Oyebanji announced the development on his official X handle on Thursday.

He said the government also licensed five meter asset providers, aiming to generate and distribute 130 MW of electricity to residents as part of efforts to address local power shortages and improve energy access.

According Oyebanji, a total of 14 licenses have been issued to electricity investors as part of the state’s efforts to reduce reliance on the national grid and promote sustainable, locally managed energy solutions.

“I am pleased to share an update on the progress we are making in Ekiti towards achieving energy independence.

“We have granted operational licenses to 14 electricity investors, which include :  3 distribution companies, 4 generation companies, 2 mini-grid generation companies, and
5 meter asset providers.

“Currently, Ekiti receives approximately 20-25 MW from the national grid, which falls short of our estimated requirement of 120 MW. Our goal is to reach 130 MW through a robust state grid, reducing our dependency on the national supply and promoting sustainable, locally managed energy solutions,” the governor said.

Furthermore, Oyebanji explained that the licensing aligns with the 2023 Electricity Law, which grants states the authority to generate and distribute their own energy supplies to residents.

He emphasized that this initiative will not only address local energy needs but also stimulate the growth of the electricity market within Ekiti State.

“This initiative aligns with the 2023 Electricity Law Enactments, which empower states to decentralise electricity markets and license providers to meet local needs better,”  he said.

Earlier in 2023, President Bola Tinubu assented to the 2023 Electricity Act, which replaced the Electricity and Power Sector Reform Act of 2005. The new Act aims to de-monopolize Nigeria’s electricity sector by breaking up the national monopoly on generation, transmission, and distribution.

It also empowers states, companies, and individuals to generate, transmit, and distribute electricity, fostering greater competition and decentralizing the country’s energy supply.

The 2023 Electricity Act allows states to grant licenses to private investors to operate mini-grids and power plants within their territories. However, the Act prohibits interstate and transnational electricity distribution, limiting the flow of electricity to within individual states.


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