Emeka Ezekwesiri & Victor Ayo-Odewale

Published in SSRN

Abstract

Mini-grid has been identified as a key solution to addressing energy poverty and driving rural electrification in Nigeria as it primarily supports reliable and affordable electrification of, and economic development in, underserved and unserved communities across different parts of Nigeria. With the burgeoning investments in the Nigerian mini-grid market, the Nigerian Electricity Regulatory Commission introduced the Mini-Grid Regulations, 2023 to rebirth a body of regulatory framework fit for purpose in the dynamic mini-grid market and catalyze investments in mini-grid solutions towards increasing energy access. This paper (a) examines the key changes introduced by the Mini-Grid Regulations, (b) highlights the implications of these innovations for mini-grid permit holders, their businesses and the Nigerian mini-grid market at large, and (c) explores the impact of the Electricity Act, 2023 on the provisions of the Mini-Grid Regulations, particularly in view of the recent constitutional amendment which allows for generation, transmission, and distribution of electricity by States. This paper concludes that while the changes ushered in by the Mini-Grid Regulations have the prospects of transforming and improving the Nigerian mini-grid market, some of the provisions of the Mini-Grid Regulations may impact adversely on mini-grid operators and their businesses or, at the least, complicate compliance requirements for them.