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Licences


To be able to Transmit, Distribute or Generate power for sale, you need to apply for a LICENCE.

TYPES OF LICENCES

1.    GENERATION LICENCE

i.    ON-GRID ELECTRCITY GENERATION LICENCE
This type of licence allows a holder to generate electricity and connect to the national grid for dispatch.  The most distinguishing feature of grid connected licence is that the holder will enter into connection agreement with the Transmission Company of Nigeria (TCN) for connection, evacuation, and wheeling of the power to the national grid.   The licensee also enters long term power purchase agreement with the Nigerian Bulk Electricity Trading Plc (NBET).

Click to Download NERC Application For Licences Regulations, 2010.

ii.    EMBEDDED GENERATION.
Embedded generation is defined to mean the generation of electricity that is directly connected and evacuated through a distribution system. Thus, embedded generation licensee generates power and evacuates through either the existing distribution facilities of a distribution licensee (privatized Discos) or through an independent distribution licensee.

The embedded generator engages and negotiates relevant power purchase agreements with an electricity distribution licensee (DisCo), or an independent distribution company. Embedded generation does not require power purchase agreement with NBET, or connection agreement with TCN.


iii.    OFF-GRID ELECTRCITY GENERATION LICENCE
It is a licence that allows its holder to generate and sell power to a single buyer.  Here the licensee can only generate and directly connect to the off-taker with whom the licensee has a power purchase agreement.


2.    Transmission Licence
Download the NERC Independent Electricity Transmission Licence Regulations 2012.


3.    DISTRIBUTION LICENCE
Distribution licence authorises the holder to distribute electricity from grid supply points to the point of delivery to consumers or eligible customers.

Click to download the Regulation on independent electricity distribution network.

4.    TRADING LICENCE
 This license allows entities to engage in the purchase and resale of electrical power and ancillary services from independent power producers and from the successor generation companies.