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New mini-grid rules will unlock renewable energy expansion – REA

The Managing Director of the Rural Electrification Agency, Dr Abba Aliyu, has praised the newly released mini-grid regulations by the Nigerian Electricity Regulatory Commission, describing them as a landmark reform that will accelerate large-scale renewable energy projects across Nigeria.

In a statement, the agency said the revised regulations were issued by NERC after two years of sustained advocacy and technical engagements led by the REA.

Aliyu said the new framework signals a move from a mindset of scarcity to one focused on scale and innovation. He added that for years, critical projects were stalled and investments slowed by a system that did not reflect the aspirations and ambition of Nigerians.

He said the new regulations align policy with the on-the-ground realities faced by developers, and are expected to unlock significant opportunities for millions of Nigerians in underserved communities who lack reliable electricity.

The REA boss also commended the NERC Chairman, Dr Musiliu Oseni, and his team, saying their willingness to collaborate has secured their place in history.

He stressed that the reform will have an immediate impact on developers operating under key initiatives such as the Distributed Access through Renewable Energy Scale-up, the Nigeria Electrification Programme, and the Energising Education Programme.

“The work now shifts from navigating bureaucratic hurdles to accelerating the deployment of infrastructure that can finally meet the true demand of underserved communities,” Aliyu said.

The new regulations also raise capacity thresholds, increasing the previous 1-megawatt limit to 5 MW for isolated mini-grids and 10 MW for interconnected mini-grids. This change enables developers to deploy larger, more resilient systems without being subjected to the complex regulatory requirements typically associated with utility-scale power projects.

In addition, the framework introduces a single permit structure that combines generation, distribution, and supply into one licence, removing the need for separate approvals.

This is expected to reduce costs and eliminate delays previously caused by dual-licensing processes that slowed down project development.

Aliyu also praised the regulations for introducing practical environmental compliance pathways tailored specifically for solar PV and battery systems, as well as clearly defined energisation timelines.

He said the reforms would ensure that once projects are completed, they are swiftly commissioned and begin delivering electricity to communities without unnecessary delays.

Under the new framework, a mini-grid is defined as “any electricity supply system with its own generation capacity supplying electricity to more than one customer and which can operate in isolation from, or be connected to, a distribution licensee’s network and which falls within the capacity limits prescribed in these regulations.”