NERC seeks investors to boost electricity supply

The Nigerian Electricity Regulatory Commission (NERC) is calling on investors to capitalize on existing regulatory frameworks to finance sizable projects and enhance electricity supply nationwide. Commission Chairman Dr. Musiliu Oseni made this appeal during a panel discussion at the 32nd Nigerian Economic Summit, held in Abuja. The conversation centered on the theme, "Power Growth: Reliable Electricity for Industry and Prosperity."

Abba Terab, NERC's Director of Economic Regulation, explained that the regulatory environment presents opportunities for financially viable and sustainable investments. The Federal Government is actively working to expand generation capacity and improve access to reliable power for households and enterprises. The regulator has established tools to facilitate profitable transactions and encourage private capital into the electricity market.

The government's efforts include promoting decentralized electricity supply models, such as embedded generation, which enables power generation closer to the customers and communities that require it. This shift is intended to generate new investment prospects beyond the traditional grid-supply model, while offering businesses and customers a more dependable power source.

Panellists emphasized the importance of regulation, gas infrastructure, and commercial diligence in creating a sustainable electricity market. Net billing, a system that allows customers who generate electricity, including from renewable sources, to receive credits or payments for power exported to the grid, was also discussed. Managing Director of the Abuja Electricity Distribution Company, Chijioke Okwuokenye, highlighted the significance of regulatory backing for initiatives like embedded generation and net billing arrangements.

Elektron's Deen Solebo pointed out government efforts to strengthen gas-to-power infrastructure, which could provide an alternative or supplement to grid supply, particularly for industrial and commercial users requiring consistent electricity for production. Lastly, Manufacturers Association of Nigeria's Segun Ajayi-Kadir stressed the need to establish a reliable electricity market where suppliers deliver power consistently, and customers compensate for the energy received, addressing the sector's commercial challenges.