Rethinking the Regulatory Architecture on Embedded Power and Independent Electricity Distribution Networks in Nigeria: Issues and Reflections

摘要

Electricity is unarguably fundamental to a modern economy. It drives progress in all areas of development, which underpins the need for a robust regulatory framework necessary to support increased investment for energy access. Embedded power provides an unparalleled innovation for energy access while off-grid embedded power clearly demonstrates a viable alternative to the grid network where the latter can sometimes be unreliable and grid extension expensive. In this article, the author investigates the current regulatory architecture for embedded power and independent distribution networks in Nigeria in the light of the critical need for energy access. The author juxtaposes the Nigerian constitutional provisions on power generation, distribution and transmission with the Nigerian Electricity Regulatory Commission (NERC) Regulation on Embedded Power 2012 and the NERC Regulation on Independent Electricity Distribution Network 2012 against the backdrop of a decentralised electricity governance model underpinned by the Nigerian Constitution. The author argues against the over-centralisation of the regulatory framework of the power industry in Nigeria and, after a careful analysis of the issues, recommends the re-thinking of the current regulatory architecture for off-grid embedded power and/or off-grid distribution networks in Nigeria. The rationale is to foster a clear regulatory environment that will be a key driver of increased off-grid and/or mini-grid energy access for investors willing to take advantage of partnership with state governments in facilitating energy access. The author believes that a clear regulatory architecture will be instrumental in avoiding so-called jurisdictional overlap or potential conflict between the Federal Government of Nigeria through NERC and the federating states in the event the latter decides to participate through their respective electric power regulatory agencies in line with the Constitution of the Federal Republic of Nigeria.