💨💧🌱Think of Section 164 of the Electricity Act as Nigeria’s “Renewable Energy To-Do List.” It tells the Nigerian Electricity Regulatory Commission (NERC), the referee of the power sector, what it must do to make renewable energy (like solar, wind, small hydro, and biomass) a bigger part of Nigeria’s energy mix.
Here’s what it boils down to:
- Simpler Licenses for Renewable Companies
NERC must make it easier (and cheaper) for renewable energy companies to get licenses. Basically, less paperwork, less wahala. - Clear Rules for Connecting to the Grid
The Commission will write the rulebook for how solar panels, wind farms, and other renewable sources can safely connect to the national electricity grid (that’s the big network of power lines feeding most of Nigeria). - Standards for Skilled Workers
If you’re a technician climbing roofs to install solar panels, there’ll be official training and certification to prove you know your stuff. Bonus: they’ll push for Nigerian-made skills and solutions, not just imports. - Standard Contracts
Renewable companies need to sell power to buyers. NERC will provide “Power Purchase Agreement” templates. Think of them as prenups for electricity deals. - Roles for Everyone
Generators (the big power plants), the Transmission Company (which moves electricity across the country), Distribution Companies (DisCos), and system operators (the traffic wardens of electricity flow) will all get clear instructions on how renewables fit into their work. - Policing the Rules
If anyone is told to buy or generate a certain amount of renewable power, NERC will monitor and enforce it. No dodging. - Specific Rules for Different Technologies
Solar, wind, biomass, and even mini-grids (small, localised electricity systems) all get their own tailored regulations. - Local Content Push
Nigeria doesn’t just want to use renewable tech, it wants to make and assemble parts locally: solar panels, batteries, turbines, boilers, etc. Good news for jobs! - Stable Pricing
To encourage investment, NERC must ensure renewable electricity has fair, stable, and long-term pricing. Translation: investors won’t lose sleep every night. - Feed-in Tariffs
If you build a small renewable plant, the law guarantees you’ll have a buyer for up to 20 years at a fixed rate. Imagine it like selling jollof rice with a standing order from your neighbours for two decades. - Mini-Grid Licenses
Renewable companies can get licenses to exclusively power specific towns or villages, with the duty to serve everyone who asks for power. - Guidelines for Small Systems
Rules will also cover home solar systems, tiny hydro plants, and stand-alone wind power, even where the big grid doesn’t reach. - Incentives for Investors
Independent Power Producers (IPPs — private companies generating electricity) will get clarity and perks if they put money into renewables. - Rural Electrification Support
NERC must back up the Rural Electrification Agency to extend renewable energy to rural communities. - Light Rules for Smaller Plants
If you’re generating between 1 MW and 10 MW (that’s medium-sized power, not too big, not too small), the licensing process will be “light-handed” — translation: less stress. - Technical Codes
There’ll be technical codes for how solar, small hydro, and wind systems should be built and maintained. - Safe Disposal
When solar panels, batteries, or turbines reach the end of their life, NERC will set rules for safe disposal and recycling. No turning Nigeria into a solar graveyard. Recall the Koko saga regarding a toxic waste dumping incident that occurred in a small fishing village of Koko, Delta State, in 1988. - Net-Metering
If you put solar panels on your roof and generate more electricity than you need, you can feed the extra into the grid and earn credit. (Yes, your light bill could finally go down). - Energy Storage
NERC, working with other agencies (MDAs = Ministries, Departments, and Agencies), will also regulate storage solutions like big batteries to make electricity more reliable and efficient.
👉 In short: Section 165 tells NERC to stop treating renewable energy like a side hustle and start making it a main gig with simpler licenses, clearer rules, guaranteed buyers, fair pricing, and local jobs.