The Nigerian Electricity Regulatory Commission (NERC) has ordered electricity Distribution Companies (Discos) to significantly increase their embedded generation capacity. This move is aimed at improving the reliability and efficiency of power supply across the country.
Embedded generation, which involves producing electricity closer to the point of consumption, is seen as a key solution to the ongoing power challenges in Nigeria. By diversifying their power sources, Discos can reduce their reliance on the national grid and mitigate the impact of fluctuations in power supply.
Under the NERC’s directive, Discos are required to procure a minimum of 398 megawatts (MW) of embedded generation capacity by a specified deadline. This will involve investing in various distributed energy resources, such as solar panels, wind turbines, and gas-fired generators.
The NERC’s decision is expected to have several positive outcomes. It will enhance grid stability, reduce transmission losses, and improve the overall quality of electricity supply. Additionally, it will create opportunities for local economic development by stimulating investment in renewable energy and other decentralized energy technologies.
While the implementation of this directive presents challenges, such as technical integration and regulatory hurdles, the NERC’s commitment to increasing embedded generation capacity is a significant step forward in addressing Nigeria’s power supply issues. By embracing decentralized energy solutions, the country can build a more resilient and sustainable electricity system.
