NERC Unveils Mini-Grid Regulations to Boost Decentralised Power, Bridge Electricity Gap

The Nigerian Electricity Regulatory Commission (NERC) has issued the Mini-Grid Regulations 2026 to accelerate the growth of decentralised power systems and address the country’s persistent electricity access gap.

The new regulation, titled NERC-R-001-2026, is aimed at expanding electrification in unserved and underserved communities, while strengthening investor confidence and protecting consumers within the Nigerian Electricity Supply Industry.

According to the commission, the framework sets out clear operational guidelines for mini-grid deployment, covering isolated systems operating independently of distribution companies with capacities of up to five megawatts, as well as interconnected systems of up to 10MW integrated with existing networks.

NERC stated that the regulation applies to a broad range of stakeholders, including developers, operators, distribution companies and host communities, with the goal of improving coordination and minimising disputes during project execution.

In line with the provisions of the Electricity Act 2023, the framework also recognises the role of state-level electricity markets, reflecting Nigeria’s transition towards a more decentralised power sector.

A key feature of the regulation is the introduction of a tiered approval system. Mini-grids below 100 kilowatts are required to register with the commission, while those above the threshold must obtain formal permits.

NERC said applications would be processed within 30 business days to reduce administrative bottlenecks and improve the ease of doing business.

To strengthen oversight, operators are required to meet defined reporting obligations. Mini-grids below one megawatt must submit annual reports, while those above one megawatt are to file quarterly reports.

The commission added that it would maintain continuous monitoring and may publish industry data to support policy formulation and market development.