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Licensing


In line with Section 32 (2) (d) of the EPSR Act the Commission issues licenses to entities that wish to engage in the business of:

(a)  Electricity generation, excluding captive generation
(b)  Electricity transmission;
(c)  Electricity system operation;
(d)  Electricity distribution or;
(e)  Trading in electricity

In addition, the Commission issues Permits for Captive generation, i.e. electricity generated for consumption by the generating entity and not sold to a third party.

The Commission licensing purview does not include entities that generate 1 MW and below of electricity or a distribution network of 100KW or below.

Under the Transitional stage in the development of the Electricity market, the licensing process is governed by NERC REGULATION FOR THE PROCUREMENT OF GENERATION CAPACITY, 2014. Click here to download the regulation.

The Fees payable for the different categories of licencees is governed by the LICENCE & OPERATING FEES REGULATION 2010. Click here to download the regulation.

 

Containers

To be able to generate power for your own use (Captive Power Generation), you need to apply for a PERMIT.

This section contains files necessary for submitting a captive power generation application.


To be able to Transmit, Distribute or Generate power for sale, you need to apply for a LICENCE.

TYPES OF LICENCES

1.    GENERATION LICENCE

i.    ON-GRID ELECTRCITY GENERATION LICENCE
This type of licence allows a holder to generate electricity and connect to the national grid for dispatch.  The most distinguishing feature of grid connected licence is that the holder will enter into connection agreement with the Transmission Company of Nigeria (TCN) for connection, evacuation, and wheeling of the power to the national grid.   The licensee also enters long term power purchase agreement with the Nigerian Bulk Electricity Trading Plc (NBET).

Click to Download NERC Application For Licences Regulations, 2010.

ii.    EMBEDDED GENERATION.
Embedded generation is defined to mean the generation of electricity that is directly connected and evacuated through a distribution system. Thus, embedded generation licensee generates power and evacuates through either the existing distribution facilities of a distribution licensee (privatized Discos) or through an independent distribution licensee.

The embedded generator engages and negotiates relevant power purchase agreements with an electricity distribution licensee (DisCo), or an independent distribution company. Embedded generation does not require power purchase agreement with NBET, or connection agreement with TCN.


iii.    OFF-GRID ELECTRCITY GENERATION LICENCE
It is a licence that allows its holder to generate and sell power to a single buyer.  Here the licensee can only generate and directly connect to the off-taker with whom the licensee has a power purchase agreement.


2.    Transmission Licence
Download the NERC Independent Electricity Transmission Licence Regulations 2012.


3.    DISTRIBUTION LICENCE
Distribution licence authorises the holder to distribute electricity from grid supply points to the point of delivery to consumers or eligible customers.

Click to download the Regulation on independent electricity distribution network.

4.    TRADING LICENCE
 This license allows entities to engage in the purchase and resale of electrical power and ancillary services from independent power producers and from the successor generation companies.

Files

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