Mini grids will ensure energy stability, say REA MD
Managing Director, Rural Electrification Agency (REA), Abba Aliyu, at the weekend said interconnected mini grids will play significant role in stablising the national grid, including addressing energy gaps in the
Managing Director, Rural Electrification Agency (REA), Abba Aliyu, at the weekend said interconnected mini grids will play significant role in stablising the national grid, including addressing energy gaps in the country.
Aliyu, in a chat on the sidelines of EnergyTimes Awards held in Lagos, expressed satisfaction with the Nigerian Electricity Regulatory Commission (NERC), saw good reasons to grant an approval for a review of mini grid regulation in the country.
He said: “It is one of the greatest achievements for this sector, where we have been engaging NERC to review the mini-grid regulation for over two years. And specifically, we wanted NERC to increase the mini-grid regulation cap of one megawatt, as well as create another specific regulation for interconnected mini-grids.
Advertisement
300x250
“This is because we have seen that in the future, interconnected mini-grids will play a key role in stabilising the grid and also play a key role in addressing energy access gap”.
READ ALSO: FULL LIST: Items banned from importation into Nigeria
Aliyu argued that the development is a great win for the renewable ecosystem because REA rather than the agency deploying one megawatt, it can now deploy 10 megawatts, meaning that the distributed renewable energy will now continue to play a significant role in the country’s overall electricity ecosystem.
“You have seen the interconnected mini-grid that we have started. We are now working on 40 interconnected mini-grids that will inject 288 megawatts of new capacity into the grid with battery storage. And we could not achieve that without getting a regulation approval from the NERC.
“And what does this means for the nation is that utility scale solar energy will now start to emerge across the country. That’s what we are seeing,” Aliyu said.
Advertisement
300x250
Recall that last week, the NERC, in its 2026 Regulation, increased the cap of isolated mini-grid from one megawatt to five megawatt; created room for interconnected mini-grids with a cap of five megawatts; harmonised the licencing process, as well as also streamlining the environmental social impact assessment process.
It was also in its determination to continually improve transparency and efficiency in the country’s power grid through enhanced reporting of Regional Transmission Loss Factors (TLF), the NERC issued Order No. NERC/2026/026, which reduces the regional TLC operated by the Transmission Company of Nigeria (TCN) from 7.24 per cent in 2025 to align with the seven per cent benchmark under the Multi-Year Tariff Order (MYTO), with a further target of lowering it further to 6.5 per cent by December 2026.
The Commission also issued directives for Nigerian Independent System Operator (NISO) to install smart meters at regional boundaries, measure and document transformer energy flows and file quarterly reports. The TCN is also expected to submit a loss-reduction action plan later in July and ensure compliance with a 6.5 per cent cap by year-end.
“NISO to file quarterly reports on TLF to NERC on a regional basis TCN to ensure that TLF across transmission regions shall not exceed 6.5% by December 2026,” NERC said in the statement.
