A Review of the Nigerian Energy Industry

NERC, MAN plan to create power grid for industrial clusters

Power transmission tower.
Power transmission tower.

Oscarline Onwuemenyi

05 August 2015, Sweetcrude, Abuja – In its bid to expand power generation capabilities in the country to boost capacity, the Nigerian Electricity Regulatory Commission (NERC) has agreed to work with the Manufacturers Association of Nigeria (MAN) on a framework to create micro electricity grid to service industrial clusters in the country.

The parties at a meeting on Tuesday at the Commission’s headquarters in Abuja, announced the setting up of a committee to address the “challenges posed to industrial productivity and how to dedicate small grids connected to large distribution grid to industrial clusters.”

The Chairman of NERC, Dr. Sam Amadi said that the Vice President, Prof. Yemi Osinbajo had been briefed on the objective which is to make power available to industrial clusters in a reliable and quickest possible approach.

He said the options being considered entail an arrangement to upgrade licences of captive electricity generators with excess capacities to supply firms within their vicinity through commercial arrangements that would be jointly beneficial to the electricity distribution companies and the industries.

Amadi explained further that the establishment of micro grid could be “beneficial as it will provide commercially viable electricity to industries and free grid electricity that goes to industries for residential and other consumers.”

MAN will head the technical committee with nominations from NERC to develop the framework that would consider financial and technical impediments to achieving NERC’s Embedded Power Generation projects in the cluster areas. It is expected to report on its activities within the next four weeks for onward action.

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