NERC mini-grid reforms to unlock large-scale renewable energy projects — REA Boss

Business Pointers

By Seun Ibiyemi

The Managing Director of the Rural Electrification Agency (REA), Dr. Abba Aliyu, has described the newly released mini-grid regulations by the Nigerian Electricity Regulatory Commission (NERC) as a landmark reform set to accelerate renewable energy deployment across underserved communities in Nigeria.

Aliyu said the updated framework marks a major shift in Nigeria’s electricity access strategy, moving from scarcity-driven policies to a more scalable and innovation-focused approach aimed at expanding power supply to millions of unserved and underserved Nigerians.

He noted that the regulations were the result of two years of sustained engagement and technical input from the REA, working closely with the power sector regulator to address long-standing bottlenecks in the mini-grid space.

According to him, the reforms will unlock significant investment opportunities and fast-track project delivery under key programmes such as the Distributed Access through Renewable Energy Scale-up (DARES), the Nigeria Electrification Project (NEP), and the Energizing Education Programme.

Aliyu explained that one of the most significant changes is the increase in mini-grid capacity thresholds, now raised from 1MW to 5MW for isolated systems and up to 10MW for interconnected mini-grids, allowing developers to scale operations more efficiently.

He added that the introduction of a single permit structure, which consolidates generation, distribution, and supply licences, will eliminate bureaucratic delays and reduce costs associated with multiple regulatory approvals.

The REA boss also praised the inclusion of clearer environmental compliance guidelines tailored for solar and battery energy systems, as well as defined timelines for energisation of completed projects.

He said this would ensure faster commissioning of infrastructure, enabling communities to benefit from electricity supply without unnecessary administrative delays.

Aliyu commended the leadership of the NERC for what he described as a collaborative and forward-looking regulatory approach, noting that the reforms would significantly improve investor confidence in Nigeria’s renewable energy sector.

He expressed optimism that the new framework would drive rapid electrification, boost economic activity in rural areas, and contribute to Nigeria’s broader energy transition goals.

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