Ekiti State, in South West Nigeria, has issued licenses to three electricity distribution companies (DisCos), four generation companies (GensCos), and two mini-grid generation companies as part of its plans to implement an off-grid electricity supply system.
Governor Biodun Oyebanji made this announcement on his official X-handle on Thursday.
Additionally, the state-licensed five-meter asset providers to work toward generating and distributing 130 MW of electricity to residents.
According to Oyebanji, a total of 14 licenses were issued to electricity investors as part of efforts to reduce dependency on the national grid and promote sustainable, locally managed energy solutions.
“I am pleased to share an update on the progress we are making in Ekiti towards achieving energy independence.
“We have granted operational licenses to 14 electricity investors, which include :
3 distribution companies
4 generation companies
2 mini-grid generation companies, and
5 meter asset providers.
“This strategic move will enhance power generation, ensure efficient distribution, and provide reliable metering for our residents.
“Currently, Ekiti receives approximately 20-25 MW from the national grid, which falls short of our estimated requirement of 120 MW. Our goal is to reach 130 MW through a robust state grid, reducing our dependency on the national supply and promoting sustainable, locally managed energy solutions,” the governor said.
- Furthermore, Oyebanji stated that the licensing aligns with the 2023 Electricity Law, which empowers states to generate and distribute their own energy supply to residents.
- The governor emphasized that this initiative will address local energy needs while fostering the growth of the electricity market within the state.
“This initiative aligns with the 2023 Electricity Law Enactments, which empower states to decentralise electricity markets and license providers to meet local needs better,” he said.
Backstory
- Earlier in 2023, President Tinubu assented to the 2023 Electricity Act which is a replacement for the Electricity and Power Sector Reform Act of 2005.
- The Act was meant to bring about the de-monopolization of Nigeria’s electricity generation, transmission, and distribution of electricity at the National level and empower states, companies, and individuals to generate, transmit and distribute electricity.
- The Electricity Act was first passed in July 2022 under the Muhammadu Buhari administration.
- Under the Act, states can issue licenses to private investors who can operate mini-grids and power plants within the state. However, the Act precludes interstate and transnational electricity distribution
- The Act was also amended in April to allow for more transparency and efficiency in the power sector.