- Nigerian Breweries receives approval to generate 41MW of captive power at its facilities in Abia, Oyo, and Enugu states.
- NERC grants permit to six universities and the Nigerian Defence Academy, totalling 63.36MW of captive power capacity.
- The approvals follow rising electricity costs and unreliable supply, with institutions seeking stable and independent power sources.
Nigerian Breweries Plc has received approval to generate captive power at its facilities in Abia, Oyo, and Enugu states. The move addresses the rising cost of electricity and frequent power outages. The company will produce 41MW of power across four stations.
The Nigerian Electricity Regulatory Commission (NERC) approved in the third quarter of 2024. The approval follows the signing of the Electricity Act 2023, prompting many companies to shift from the national grid to generate their power.
NERC issues captive power permits to entities that want to produce electricity exclusively for their use. The plants cannot sell electricity to third parties. NERC approved licenses for 11 applicants, totalling 63.36MW of capacity.
In addition to Nigerian Breweries, six Nigerian universities and the Nigerian Defence Academy (NDA) received permits. The approved universities include the University of Abuja (3MW), University of Calabar & Teaching Hospital (7MW), Michael Okpara University of Agriculture, Umuahia, Abia State (3MW), University of Maiduguri & Teaching Hospital (12MW), Federal University of Agriculture, Abeokuta (3MW), and Federal University Gashuwa, Yobe State (1.5MW). The NDA, based in Kaduna, received 2.5MW.
These approvals come amid widespread complaints about rising electricity bills. After the Federal Government removed electricity subsidies for customers on Band A feeders, many institutions saw their energy costs soar. The University of Lagos College of Medicine and the Lagos University Teaching Hospital faced a combined bill of N280 million in May 2024, compared to less than N100 million in previous months. Other institutions, such as the Federal University of Technology, Akure, and the University of Benin, also reported sharp increases in their electricity bills.
The Federal Government has offered subsidies to tertiary education and health institutions to help ease the impact of rising energy costs. However, many institutions still struggle with high electricity prices and unreliable supply.
The new captive power permits will give Nigerian Breweries and universities more stable and reliable power. With these permits, these entities can ensure continuous operations without depending on the unstable national grid.
NERC also issued several other approvals during this period. It certified seven Meter Service Providers, five-meter installation companies, and two-meter manufacturers. The Commission also issued 22 permits for Meter Asset Providers and 50 orders to regulate the activities of licensed operators.
In summary, Nigerian Breweries and several academic institutions are taking steps to secure reliable power through captive generation. This trend reflects a broader shift, as many companies and institutions opt out of the national grid due to high costs and unreliable supply. NERC’s approval of these permits signals a significant change in Nigeria’s power landscape, possibly encouraging more organisations to invest in their power generation as energy challenges continue.