NERC Adopts New Tariff Tool to Advance Mini-Grid Development
The Nigerian Electricity Regulatory Commission (NERC) has officially adopted the African Forum for Utility Regulators’ (AFUR) mini-grid Tariff Tool, as announced in a statement on Friday. This tool, developed in collaboration with AFUR and key stakeholders, is designed to facilitate the establishment of cost-reflective tariffs for mini-grid projects, ensuring fair pricing and efficiency. The tool introduces new features, such as Portfolio Applications, which allow developers to register multiple mini-grid sites under one application. This simplifies regulatory processes, improves oversight, and leverages economies of scale to lower tariffs for end users. NERC also highlighted that the tool will be expanded to 30 African countries, fostering regulatory consistency across jurisdictions. NERC has instructed all mini-grid developers to start using the AFUR mini-grid tariff tool for permit applications from December 16, 2024. This move is expected to improve the regulatory framework for mini-grids and support the growth of the renewable energy sector, addressing Nigeria’s ongoing power challenges.
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