The new law, ‘feed-in tariff regulations for renewable energy sourced electricity in Nigeria’, requires electricity distribution companies in the country to source 50% of the electricity from renewable sources such as biomass, small hydro, wind and solar energy.
The remaining 50% of the renewable electricity must be procured by the Nigerian Bulk electricity Trading Company.
As per the regulation, a renewable energy facility must have a capacity ranging between 1MW and 30MW, above which the plant has to meet additional conditions other than those already mentioned in the law.
NERC chairman Sam Amadi said: "With this regulation, we have been able to unlock further investment potentials in the country’s power sector. Its major objective is to diversify our sources of electricity and take advantage of our options.
"The provisions of these regulations shall apply to all qualifying renewable energy sourced electricity of capacity above 1megawatt and smaller than 30mw at a site that is connected to the transmission grid or the distribution networks.
"For large renewable (30mw above) integrated resource planning will be carried out before the NERC will initiate a competitive bid process."
Around 50% of the targeted renewable electricity is expected to be achieved by 2018.
