Vitality consultants are weighing in on the Nigerian Electrical energy Regulatory Fee’s (NERC) proposed regulation that might permit solar energy customers to promote extra electrical energy again to the nationwide grid.
In separate chats with Nairametrics, many hailed the initiative as a landmark step towards renewable power adoption and power safety, whereas others cautioned that Nigeria’s energy sector might not but be ready for such a posh framework.
Dr. Sam Amadi, former Chairman of the NERC, on his half, cautioned towards the untimely adoption of web billing in Nigeria’s energy sector, stressing that the trade is but to handle basic weaknesses in regulation, service supply, and infrastructure.
Talking in an unique chat with Nairametrics, Amadi described web billing association as an vital instrument for the renewable power market. Nevertheless, he warned that Nigeria’s electrical energy sector lacks the readiness to implement such a posh framework.
“Web billing is among the vital methodologies for renewable power market. That is vital as a result of it supplies a technical useful resource for efficient mainstreaming of renewable power, contemplating that the brand new electrical energy regulation locations a lot premium on constant improve of renewable power within the nationwide grid
“I’m not certain anybody is ready for the complexity of the pro-consumer within the electrical energy grid. This can require regulatory modifications, that are nonetheless far-fetched. Once more, provide situations are nonetheless poor. Folks haven’t attained any diploma of self-sufficiency, so how will they promote to others?” he said.
Bogus concepts borrowed from organized markets
Amadi argued that Nigeria should first get the fundamentals of a purposeful electrical energy market proper earlier than aspiring to undertake what he termed “bogus concepts borrowed from extra developed and arranged markets.”
He highlighted a number of persistent issues: inaccurate billing techniques, insufficient metering of customers, weak customer service frameworks, poor regulatory enforcement, and the absence of a strong knowledge infrastructure for electrical energy distribution corporations.
“We have to concentrate on being environment friendly and efficient with the essential parts of a purposeful electrical energy market earlier than aspiring to bogus concepts that we borrow from extra developed and arranged markets. First, we’d like the essential effectivity of correct billing and having meters for each customer, whether or not postpaid or pay as you go. Even the customer service techniques are weak, the regulatory enforcement available in the market is weak, and distribution corporations haven’t established primary knowledge about their prospects. We’re but to arrange a primary framework for demand-side administration. These are the basics earlier than we begin speaking in regards to the extra complicated points,” he famous.
Amadi additionally raised considerations in regards to the dangers of over-reliance on renewable power in Nigeria’s fragile grid, warning that extra solar energy might drive up prices if not correctly managed.
“Extra photo voltaic on the grid might result in costly energy. We have to optimize standard energy and use photo voltaic as backup for now. Expertise in Europe reveals the industrial and technical challenges of an excessive amount of reliance on renewable power. We’ve got to make haste slowly,” he famous.
He additional urged NERC to prioritize its core mandate of defending customers and implementing service requirements reasonably than being distracted by formidable however impractical improvements.
“NERC nonetheless has lots to study to grow to be a customer-friendly regulator. My recommendation is it ought to busy itself with being a reputable, reliable, and agency regulator of present requirements and repair situations and never distract itself with these highfaluting and low-value improvements,” Amadi famous.
Different consultants react
Not all consultants share Amadi’s reservations. Some view the initiative as a turning level for Nigeria’s power transition.
Dr. Funke Olayemi, a renewable power guide, described the initiative as “a game-changer” for Nigeria’s power transition. “For years, photo voltaic adopters have solely been in a position to generate energy for self-consumption, however this framework supplies an incentive for households and companies to speculate much more in photo voltaic. It means renewable power turns into not only a backup, however a tradable useful resource,” she stated.
Equally, Engr. Charles Ugwu, an power coverage analyst, argued that the regulation might assist stabilize the grid in the long term. “If correctly applied, extra solar energy fed into the grid throughout peak daylight hours can cut back strain on conventional era crops and diversify provide sources. That is particularly vital at a time when the nationwide grid suffers frequent collapses,” he famous.
Others, nonetheless, urged warning. An trade operator who most popular anonymity highlighted considerations round infrastructure readiness. “Our distribution corporations (DisCos) are already battling metering, billing, and assortment. With out strong techniques in place, crediting photo voltaic producers pretty might grow to be a problem,” the supply warned.
Specialists additionally consider the regulation might unlock new financing alternatives. By offering a pathway for photo voltaic customers to monetize extra power, banks and buyers could also be extra keen to fund renewable installations, notably for SMEs, farms, and communities that may generate surplus electrical energy.
Extra insights
Nigeria’s photo voltaic power capability has grown quickly in recent times. In 2023 alone, photo voltaic panel imports had been valued at over $200 million—equal to greater than 4 million panels—a lot of which went into captive energy era.
By the primary quarter of 2025, in accordance with NERC, the worth of imported panels had reached roughly N125.29 billion.
This surge has been pushed by a mixture of authorities initiatives and personal sector investments, notably in rural and off-grid areas the place decentralized power options are vital. In 2024, the nation added 63.5 MW of solar energy, pushing whole put in capability to 385.7 MW.
How the proposed web billing plan will work
Below the proposed NERC framework, “prosumers”—customers who additionally generate electrical energy can connect with the nationwide grid.
In keeping with NERC, power consumed from a Distribution Licensee might be billed on the relevant end-user tariff, whereas extra power exported again to the grid might be credited by a web metering instrument.
The regulation outlines two parts for exported energy:
- Fastened Cost: Based mostly on the common tariff of grid-connected hydropower crops.
- Variable Cost: Reflecting interconnection prices incurred by the prosumer, excluding the renewable power system itself.
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