PART VII - GENERATION OF ELECTRICITY


Part VII of the Electricity Act 2023 comprises sections 80 and 81. The two sections are geared towards a sustainable and secure energy future for Nigeria.

Key points raised are:


Promotion of Renewable Energy
The Electricity Acts 2023 empowers the Commission (NERC) to constantly encourage the generation of electricity from renewable energy sources. These include solar, wind, small hydro, and biomass. This aligns with the global shift towards greener energy and reducing reliance on fossil fuels.

Licensing and Promotion
When issuing generating licenses, the Commission promotes various types of generation:
  • Embedded Generation: Smaller scale electricity generation located close to where the electricity is used.
  • Hybridised Generation: Combining multiple forms of power generation to create a more reliable and efficient energy system.
  • Co-generation: Simultaneous production of electricity and useful heat from the same energy source.

Extraordinary Circumstances
The Commission can direct generating licensees to operate under specific conditions during extraordinary circumstances. This includes:
  • Threat to State Security:Situations where the country's security is at risk.
  • Public Order:Scenarios affecting the general peace and order within the country.
  • Natural Calamities:Events like earthquakes, floods, or other natural disasters.

Offset of Adverse Impact
When the Commission directs a generating licensee under extraordinary circumstances, they must find ways to mitigate any negative impacts that arise from these directions. This is to ensure that the measures taken do not cause more harm than good.

It's a comprehensive approach aimed at ensuring a robust, sustainable, and secure electricity generation system.

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