The Nigerian Electricity Regulatory Commission has mandated that Distribution Companies procure a minimum of 398MW of embedded generation to improve power supply reliability.
Embedded generation involves power plants connected to a distribution network rather than the national grid.
This directive, outlined in the September 2024 Supplementary Order to the Multi-Year Tariff Order 2024, requires each of Nigeria’s 11 Discos to source 10% of their 2024 load allocation from embedded generation, according to The Punch.
This measure aims to enhance electricity reliability and address supply challenges.
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).
“A minimum of 14MW (i.e., 50 per cent) of the embedded generation capacity must be sourced from renewable energy sources.”
The Nigerian Electricity Regulatory Commission (NERC) has specified the embedded generation capacity requirements for for Kano Electricity Distribution Plc as 27MW; Port Harcourt Electricity Distribution Plc, 28MW; Yola Electricity Distribution Plc, 11MW; Abuja Electricity Distribution Plc, 61MW; and Jos Electricity Distribution Plc, 22MW.
These requirements are part of NERC’s effort to improve power supply reliability across Nigeria.
