40 new mini-grids to add 288MW capacity

The Managing Director and Chief Executive Officer of the Rural Electrification Agency has said that about 40 interconnected mini-grids are being developed to inject 288 megawatts of additional capacity into the national grid, following recent regulatory reforms in the renewable energy space.

Speaking with journalists on the sidelines of the 2026 Energy Times Awards, where he was honoured, the REA boss described the newly reviewed renewable mini-grid regulation as a major milestone that would accelerate distributed power deployment and help close Nigeria’s electricity access gap. He explained that the agency had engaged the Nigerian Electricity Regulatory Commission for more than two years to review the earlier framework, particularly to expand the capacity limit and create a dedicated structure for interconnected mini-grids.

According to him, the revised regulation increases the cap for isolated mini-grids and introduces clearer provisions for interconnected systems, while also harmonising licensing procedures and streamlining environmental and social impact assessment requirements. He added that the changes would enable developers to deploy larger projects and reduce the need for special approvals, thereby encouraging investment in distributed renewable energy.

The REA chief further noted that interconnected mini-grids would play a significant role in grid stabilisation and allow renewable energy projects to contribute more meaningfully to national supply. He stressed that the agency had already commenced work on several interconnected systems that would collectively inject hundreds of megawatts into the grid, supported by battery storage.

He said, “It’s one of the greatest achievements for this sector. We have been engaging NERC to review the mini-grid regulation for over two years. 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. 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 the energy access gap.

“So, we are happy that they have seen the reason after our back and forth. We exchanged over eight letters, and they have seen the reason. They have done the engagement with stakeholders. And they have now reviewed the mini-grid and released the new one.”

Highlighting the provisions of the new regulation, he said there is an increase in the cap of isolated mini-grids from one megawatt to five megawatts.

“There’s also the creation of interconnected mini-grids with a cap of 10 megawatts, harmonising the licensing process as well as also streamlining the environmental and social impact assessment process. So this is a great win for the renewable ecosystem,” he stressed.

On the expected impact, he said it means that the distributed renewable energy will now continue to play a significant role in powering homes and businesses nationwide.

“Rather than now deploying one megawatt, we can deploy 10 times as many megawatts,” he said.

Aliyu spoke about some of the agency’s ongoing projects.

“You have seen the interconnected mini-grids that we have started. We are now working on 40 interconnected mini-grids that will inject 288MW of new capacity into the grid with battery storage. And we could not achieve that without getting a derogation approval from the NERC, but now, they have created the approval. So, we don’t have to get derogation approval. Everybody will now go and get a site within the feeder that can take that capacity.

“It means that utility-scale solar energy will now start to emerge across the country. That’s what we are looking at,” Aliyu submitted.