NERC rolls out new mini-grid rules to boost rural power supply

The Nigerian Electricity Regulatory Commission (NERC) has introduced a new set of regulations aimed at strengthening the development and operation of mini-grids across Nigeria.

The guidelines, contained in a regulatory document titled mini-grid regulations 2026, provide a structured framework to expand electricity access, particularly in underserved and off-grid communities, while safeguarding investors and consumers.

Under the new rules, mini-grids with a capacity above 100 kilowatts must obtain a permit from the commission, while smaller systems can operate under a registration model. Operators are also required to comply with reporting obligations, including annual and quarterly submissions depending on capacity.

The regulation applies to both isolated mini-grids operating independently of distribution companies and interconnected systems linked to existing networks. Isolated grids are capped at 5 megawatts, while interconnected ones can operate up to 10 megawatts.

NERC stated that permit applications would be processed within 30 business days, in a move designed to encourage investment while maintaining regulatory oversight.

The framework covers developers, operators, distribution companies, and host communities, ensuring a coordinated approach to power delivery at the local level.

Importantly, the new rules align with the Electricity Act 2023 and allow for state-level regulatory involvement, reflecting ongoing reforms in Nigeria’s electricity sector.

Highlighting the objective of the policy, the commission said, “the regulation aims to accelerate rural electrification, attract private investment, ensure fair tariffs and consumer protection, as well as promote coordination between mini-grid developers and DisCos.”

With Nigeria still grappling with power shortages, industry watchers say the success of the new regulation will depend on how effectively it balances ease of entry for investors with strict compliance requirements.