Discos, Gencos, others get approval to supply Ekiti with off-grid electricity
The Ekiti State Government has granted licenses to three electricity distribution companies, four generation companies, and two mini-grid generation companies as part of its plan to implement an off-grid electricity supply system.Governor Biodun Oyebanji announced the development on Thursday via his official X handle.
He also stated that the government has licensed five meter asset providers with the goal of generating and distributing 130 MW of electricity to residents in order to address local power shortages and improve energy access.
According to Oyebanji, the state has issued 14 licenses to electricity investors as part of its efforts to reduce reliance on the national grid and promote sustainable, locally managed energy solutions.
"I am pleased to provide an update on our progress in Ekiti towards energy independence.
"We granted operational licenses to 14 electricity investors, including 3 distribution companies, 4 generation companies, 2 mini-grid generation companies, and 5 meter asset providers."
"Currently, Ekiti receives about 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 strong state grid, reducing our reliance on national supplies and promoting sustainable, locally managed energy solutions," the governor stated.
Furthermore, Oyebanji explained that the licensing is consistent with the 2023 Electricity Law, which allows states to generate and distribute their own energy supplies to residents.
He emphasized that this initiative will not only address local energy needs, but will also help to grow the electricity market in Ekiti 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," said the minister.
Earlier in 2023, President Bola Tinubu signed the 2023 Electricity Act, which replaced the 2005 Electricity and Power Sector Reform Act. The new Act seeks to de-monopolize Nigeria's electricity sector by dismantling the national monopoly on generation, transmission, and distribution.
It also allows states, businesses, and individuals to generate, transmit, and distribute electricity, increasing competition and decentralizing the country's energy supply.
The 2023 Electricity Act empowers states to issue licenses to private investors to operate mini-grids and power plants on their territory. However, the Act forbids interstate and transnational electricity distribution, limiting the flow of electricity within individual states.
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