The Nigerian Electricity Regulatory Commission. (NERC) has officially adopted African Forum for Utility Regulators’ mini-grid Tariff Tool to boost development.
The commission disclosed this in a statement posted on its official X handle on Friday.
“The Nigerian Electricity Regulatory Commission (‘Commission’) is pleased to announce the formal adoption and release of the African Forum for Utility Regulators mini-grid Tariff Tool,” the statement said.
NERC explained that the tool, developed in partnership with AFUR and key stakeholders, “enhances the process of determining cost-reflective tariffs for mini-grid projects” to ensure fair and efficient pricing.
“The tool supports the implementation of the amended Mini-Grid Regulations 2023 by introducing new features such as Portfolio Applications, which allow developers to register multiple mini-grid sites under a single application,” the statement added.
“This simplifies processes, fosters efficient regulatory oversight, and benefits from economies of scale, helping to reduce end-user tariffs for mini-grid projects.
“Furthermore, the AFUR mini-grid tariff tool is expected to be rolled out across 30 African countries in the coming years, bringing regulatory consistency to the mini-grid subsector and making it easier for project developers to operate across jurisdictions,” the commission added.
The Commission said the adoption of the tool was expected to bring regulatory consistency to the mini-grid subsector, making it easier for project developers to operate across jurisdictions.
The tool, which is set to be rolled out across 30 African countries in the coming years, is expected to reduce end-user tariffs for mini-grid projects, promoting affordable and reliable electricity access.
NERC has mandated all mini-grid developers to begin using the AFUR mini-grid tariff tool to file permit applications with the commission from Monday, December 16, 2024.
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