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NERC Grants 3 Captive Power Permits For 14.12MW, BUA Cement Gets 12MW

The Nigerian Electricity Regulatory Commission (NERC) approved three captive power generation permits with a combined capacity of 14.12MW in the second quarter of 2026, with BUA Cement Plc taking 12MW of it.

The Commission, in its Second Quarter 2026 report, said that the permits went to BUA Cement Plc, African Consulting Office Energy Solutions Limited and Power Gas Ebedei Limited.

BUA Cement’s 12MW is for a plant at Kalambaina Street in Sokoto, Sokoto State. By the report’s figures, that is about 85 per cent of the total capacity approved in the quarter.

African Consulting Office Energy Solutions Limited received a permit for 1MW in Kazaure Local Government Area of Jigawa State.

Power Gas Ebedei Limited received a permit for 1.12MW in Ebedei Community, Delta State.

What a captive permit allows

NERC said captive permits are issued to entities that intend to own and maintain power plants exclusively for their own consumption. The holders may not sell electricity from the plants to any third party.

The permits are separate from the five licences the Commission issued in the quarter, which cover trading, embedded generation, off-grid generation and independent distribution networks.

The commission issued a total of 27 licences, permits and certifications in the quarter.

LEADERSHIP checks indicated that the commission issued five licences, three captive generation permits, one mini-grid permit, 16 certifications for Meter Service Providers and two permits for Meter Asset Providers.

Of the five licences, Midstream Solutions Limited received an electricity trading licence. DMTL Oil & Gas Company Limited was licensed for 5MW of gas-fired embedded generation in Delta State. T&D West Africa Limited got an off-grid generation licence for a 1.25MW solar plant in the Federal Capital Territory.

Delta Mega Trend Nigeria Limited and Coronation Power Distribution Company Limited each received an Independent Electricity Distribution Network (IEDN) licence.

Captive and mini-grid permits

The three captive permits have a combined capacity of 14.12MW. They went to BUA Cement Plc for 12MW at Kalambaina Street, Sokoto; African Consulting Office Energy Solutions Limited for 1MW in Kazaure Local Government Area, Jigawa State; and Power Gas Ebedei Limited for 1.12MW in Ebedei Community, Delta State.

Captive permits are for entities that generate power only for their own use and do not sell electricity to third parties.

NERC also issued one mini-grid permit, with a gross capacity of 0.05MW, to Skylight Engineering Service Limited for a project in Jibia Local Government Area, Katsina State.

The permits come as available capacity on the national grid stayed low. Average available capacity was 4,454.17MW in the quarter, and about 67 per cent of installed capacity was unavailable for dispatch.

The Commission certified 16 Meter Service Providers, made up of 15 installers and one importer. Fourteen of the installers hold Class A1 certification, and one, Universal Integrated Power and Utility Services Limited, holds Class C1. The importer is Ballack Industries Limited.

The report explains that an A1 holder can install low-voltage single-phase and three-phase metering systems on contracts exceeding 750 meters. A C1 holder can handle contracts exceeding 500 meters.

NERC also granted two Meter Asset Provider permits, to Universal Integrated Power and Utility Services Limited and Beacon Power Services. Asset providers can finance, procure, supply, install and maintain meters.

The approvals come as metering remains a weak point for the DisCos. Of the 12,589,486 active customers on their books, 7,743,839 were metered at the end of June, representing 61.51 per cent. DisCos installed 350,270 meters in the quarter, down 17.97 per cent from the first quarter.

No hearings or directives

The report says the Commission held no hearings or public consultations and issued no directives to licensees in the quarter. It issued one Notice of Intention to Commence Enforcement to a licensee for non-compliance with a forum decision.

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