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Electricity Act 2023
Introduction
PART I: Preliminary Provisions
PART II: National Integrated Electricity Policy and
Strategic Implementation Plan
PART III: Development of A Competitive National Electricity Market
PART IV: Incorporation and Licensing of ISO
PART V: Establishment, Functions and Powers of
The Nigerian Electricity Regulatory Commission
PART VI: LICENSING
PART VII: Generation of Electricity
PART VIII: Establishment of The National Hydroelectric
Power Producing Areas Development Commission
PART IX: Transmission of Electricity
PART X: Distribution and Supply of Electricity
PART XI: Tariffs and Subsidies
PART XII: Acquisition of Land and Access to Land
PART XIII: Consumer Protection and Licensee Performance Standards
PART XIV: Competition and Market Power
PART XV: The Power Consumer Assistance Fund
PART XVI: Rural Electrification Agency
PART XVII: Renewable Energy and Energy Efficiency
PART XVIII: Nigerian Electricity Management Services Agency
PART XIX: National Power Training Institute of Nigeria
PART XX: Offences and Penalties
PART XXI: Miscellaneous and Supplementary Provisions
PART XXII: Final Provisions
First Schedule to Electricity Act 2023
Second to Fifth Schedules to Electricity Act 2023
NESI
NESI
Glossary
Act
Affiliates
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Ancillary Services
Animal Waste
Auditor-General
Authority
Bio-Degradable
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Captive Generation
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Constitution
Consumer
Control Area
Cross Subsidies
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Distribution
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Distribution Licensee
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and Other Stakeholders
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Link 2
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Nigeria Electricity Act 2023
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Renewable Energy-Intro
PART XVII - RENEWABLE ENERGY AND ENERGY EFFICIENCY
Part XVII of the Electricity Act 2023 comprises sections 164 through 171. Its purpose is to create a solid foundation for developing and integrating renewable energy into Nigeria’s energy mix, enhancing sustainability and efficiency. They also foster fair and transparent integration of renewable energy into the national grid, ensuring sustainable energy development while complying with established tariffs and regulations.
The following are the highlights of the 8 sections:
Renewable Energy and Energy Efficiency
Development and Utilization Measures
Licensing and Fees:
Simplified regime for issuing licenses to renewable energy service companies.
Regulations for Connectivity:
Regulations for grid and distribution network connectivity for renewable energy sources.
Technical Standards:
Standards and certification procedures for technical personnel.
Power Purchase Agreements:
Standards for marketing and trading renewable electricity.
Integration Regulations:
Regulations for integrating renewable energy into the national grid.
Compliance Monitoring:
Enforce compliance with renewable purchase obligations.
Embedded Generation Regulations:
Standards for solar PV, wind turbines, and biomass electricity.
Mini-Grid Regulations:
Regulations for installation, metering, billing for renewable energy mini-grids.
National Content Development:
Address local content requirements for renewable energy components.
Stable Pricing Mechanism:
Ensure favorable pricing and access to the national grid.
Promotion of Renewable Energy:
Feed-in tariffs for various renewable energy plants.
Mini-grid concessions for renewable energy companies.
Technical Specifications:
Standards for solar homes, micro-hydro, wind power.
Market Clarity and Incentives:
Incentives for investments in renewable energy generation.
Support for Rural Electrification:
Assistance for rural electrification using renewable sources.
Light-Handed Measures:
Concessions for generation, distribution of renewable electricity.
Net-Metering Guidelines:
Guidelines for net-metering for roof-top solar PV, small wind power.
Energy Storage Regulation:
Regulations for energy storage to promote efficiency.
Approval and Charges
Approval of Rates:
Rates for purchasing electricity from renewable sources.
Charges for mini-grid and grid connection.
Rates for wheeling electricity from renewable sources.
Commercial Activities
Activities:
Generation, distribution, sales, installation.
Regulatory Scope:
The Commission may limit or expand the scope of activities.
Tax Incentives
Introduction of Incentives:
Tax incentives to promote renewable energy generation and consumption.
Renewable Purchase Obligation
Considerations:
Technology, financial integrity, cost effect on tariffs.
Bulk Customer Obligations:
Purchase specified percentage of electricity from renewable sources or pay a premium.
Revenue Source:
Premium payments as a revenue source for the Commission.
Power Purchase Agreements
Utility Agreements:
Guidelines for power purchase agreements with renewable energy generators.
Guideline Considerations:
Technology, location, operating norms, costs, return on investment, consumer-investor balance.
Feed-In Tariff:
Guaranteed tariff rates for renewable energy.
Feed-in Tariff Regulation
Approval Required:
Public utilities need Commission approval to demand a feed-in-tariff rate for renewable energy.
Utilities cannot charge higher than the approved rate.
Exception:
Distribution licensees can charge a higher rate if agreed by both parties with Commission approval.
Export Exclusion:
Approval power does not apply to the export of renewable energy.
Publication of Rates
Feed-in Tariff Rates:
Approved rates published in the Federal Government Gazette and mass media.
Connection and System Upgrades
Connection Obligations:
Transmission/distribution operators must connect renewable energy generators within their coverage area.
Operators must upgrade systems to accommodate renewable energy at reasonable economic expense, shared equally between operators and generators.
Connection installations to the metering point are the responsibility of the generator.
Connection Agreements:
Operators must enter into agreements with renewable energy generators for connections.
Local Content Requirements
Operational Activities:
Renewable energy operations must include local content in their activities.
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