The Managing Director of the Rural Electrification Agency(REA), Abba Aliyu, has praised the newly released mini-grid regulations issued by the Nigerian Electricity Regulatory Commission(NERC), describing them as a historic turning point that could accelerate renewable energy development in Nigeria.
According to a statement from the agency, the updated regulations were released after two years of sustained advocacy and technical submissions from the REA aimed at improving the regulatory environment for off-grid electricity projects.
Aliyu said the reforms signal a shift from what he described as “scarcity thinking” to a strategy built on scale, innovation, and expanded electricity access.
He noted that for years, several energy projects faced delays and slowed investments due to regulatory processes that did not fully reflect the realities faced by developers working in underserved areas.
By aligning policy with on-ground challenges, Aliyu said the new rules are expected to unlock major opportunities for millions of Nigerians who still lack reliable access to electricity.
The REA boss also commended the Chairman of NERC, Musiliu Oseni, and his team for their openness to collaboration during the reform process.
He said their commitment to regulatory improvements would have lasting impact on Nigeria’s renewable energy landscape.
Aliyu added that developers working under key national initiatives such as the Distributed Access through Renewable Energy Scale-up, the Nigeria Electrification Programme, and the Energising Education Programme will immediately benefit from the reforms.
“The work now shifts from navigating bureaucratic hurdles to accelerating the deployment of infrastructure that can finally meet the true demand of underserved communities,” Aliyu said.
One of the major highlights of the new regulation is the increase in mini-grid capacity thresholds. Under the revised rules, the limit has been raised from the previous 1 megawatt to 5 MW for isolated mini-grids and 10 MW for interconnected mini-grids.
This change allows developers to build larger and more robust systems without being subjected to the complex regulatory requirements typically applied to full-scale utility power plants.
The regulation also introduces a single permit system that consolidates generation, distribution, and supply approvals into one licence. This replaces the previous dual-licensing structure that developers said often caused delays and increased project costs.
Aliyu also highlighted the introduction of clearer environmental compliance pathways designed specifically for solar photovoltaic and battery systems, as well as defined timelines for project energisation.
According to him, the reforms will ensure that once projects are completed, they can be commissioned quickly and begin supplying electricity without unnecessary administrative delays.
Under the new rules, a mini-grid is defined as an electricity supply system with its own generation capacity that provides power to multiple customers and can either operate independently or connect to a distribution licensee’s network within approved capacity limits.
The regulations apply to isolated mini-grids with installed capacity of up to 5 MW per site and interconnected mini-grids with installed capacity of up to 10 MW per site.
Isolated mini-grids are designed to supply electricity independently of a distribution company’s network, typically in remote or unserved communities. Interconnected mini-grids, on the other hand, operate in coordination with an existing distribution network.
For isolated projects, the commission may grant permits where the proposed mini-grid is located in a designated unserved area and does not conflict with an approved network expansion plan by a distribution licensee.
Developers must also meet community engagement requirements, technical standards, safety regulations, and tariff model guidelines before approval can be granted.
For interconnected mini-grids, the regulation requires a tripartite agreement involving the host community, the mini-grid developer, and the distribution licensee.
Once the agreement is submitted and the retail tariff is determined using the approved mini-grid tariff model, the commission may register the agreement and issue a permit for the project.
Energy experts say the reforms could significantly accelerate electricity access in rural and underserved communities while supporting Nigeria’s broader transition toward renewable energy solutions.
