Comply with Policies and Regulations
Introduction
Fundamental remarks
Mini grids
Over the last few years, mini-grids have played a key role in implementing Nigeria’s energy access and sustainable energy goals. They are now widely acknowledged as an integral component of the country’s energy ecosystem, delivering sustainable and reliable electricity access to nearly 27 thousand households living in areas that, until now, were out of reach of or unreliably served by the main grid infrastructure[1].
In 2016, two significant developments took place in the Nigerian energy sector. First, the Rural Electrification Agency (REA) released the Rural Electrification Strategy and Implementation Plan (RESIP), which acknowledged mini-grids’ role in closing the energy access gap and improving supply. In the same year, the Nigerian Electricity Regulatory Commission (NERC) approved comprehensive mini-grid regulation, NERC Regulation for Mini-grids 2016, covering a broad set of issues, from mini-grid licensing to quality standards and tariff design.
The Energypedia article Policy and Regulatory Framework for Energy in Nigeria discusses the regulatory landscape in more detail.
Guiding Principles
Nigerian developers working on decentralized renewable electricity solutions for off-grid areas should consider several key aspects of regulations and policies to ensure compliance and the successful implementation of their projects. This section will list some guiding principles.
Licensing and Regulatory Compliance:
Developers should make sure to obtain the necessary licenses and permits from regulatory authorities, such as the Nigerian Electricity Regulatory Commission (NERC) and state-level agencies, to operate legally in the energy sector. Their project has to comply with the NERC Regulation for Mini-grids 2016 and any other relevant regulations that govern mini-grid and off-grid operations.
Tariffs and Pricing:
It is advisable to develop a clear pricing strategy that adheres to regulatory guidelines. Mini-grid operators are typically required to set tariffs in a transparent and non-discriminatory manner. One should ensure that the pricing model is competitive and affordable for the target communities while still allowing for sustainable operation and maintenance of the system.
Quality and Standards:
Maintaining high-quality standards for renewable energy systems is important to ensure reliability and safety. Developers should familiarize themselves with relevant quality and safety standards, and ensure that their systems meet or exceed these standards.
Community Engagement and Consent:
Engaging with the local communities where the projects are located and obtaining their consent and support is key for a successful intervention. For example, one can develop community-based ownership and management models to ensure that the benefits of the project are shared with the community. (refer to user needs section)
Data Reporting and Compliance Monitoring:
Robust data reporting and monitoring systems can help to comply with regulatory reporting requirements. Developers should be prepared for inspections and audits by regulatory authorities.
Flexibility and Adaptability:
Keep up to date on policy changes and adapt your business model accordingly to align with evolving regulations and incentives.
Provide training for your staff
A cornerstone for the successful establishment and maintenance of an off-grid solar (OGS) project is its personnel. During the construction of the plant, care should be taken to train them beforehand. Before entering a solar plant, the employee needs a hazard briefing including health and safety regulations. The operation and maintenance (O&M) of the facility should be carried out by trained staff who meet the relevant qualifications to work safe, accountable and responsible. Especially in rural, emerging markets this can be challenging as qualified personnel is not always available. Therefore developers should consider offering their employee standard training which is provided by public training institutes and international organisations as well as further education opportunities for instance in the form of certifications/ diplomas. A selection of training institutions in the OGS sector can be found in Table 1. The industry is changing fast, and so is the technology. Therefore a developer should create a continuous internal and external training scheme, including opportunities for qualification and development[2].
| Name | Area of action | Description |
|---|---|---|
| Renewables Academy (RENAC) | Worldwide, online | RENAC is a provider for training and capacity building on renewable energy and energy efficiency based in Germany. Additionally to solar energy, they also offer courses on other renewable energy sources as well as on business development. The offer includes a variety of ready-made trainings for individuals, tailor-made trainings for industry and organisations and academic programmes. The formats take place online or on-site at the RENAC training center in Berlin. In addition to the regular training programmes, RENAC also offers projects in partnership with other organisations in developing countries. These are usually free through financial support by third parties. |
| Energy Delivery Modes (EDM) Training by UNITAR | Online | The United Nations Institute for Training and Research (UNITAR) offers a wide range of courses and training activities for a diverse audience. The free EDM training aims to build staff capacity to support the integration of energy access and sustainable delivery models of modern energy services into humanitarian and development programming. It is based on the EDM Toolkit developed by IIED and CAFOD. The course consists of three modules:
|
| Cornerstone of rural electrification (CORE) | Online | The CORE initiative was jointly launched by ARE, ICA, IRENA, SforAll, UNEO and UNIDO to address the immense capacity building and technical assistance needs to support the development of DRE systems. It offers technical assistance to Practitioners on aspects related to improving safety, efficiency and reliability of decentralised electrification projects; Communities (especially women) on productive use of electricity; and to Governments on enhancing the policy and regulatory framework in support of decentralised electrification. |
| Asteven Renewable Energy Academy | Nigeria, UK | Asteven Energy is the first Innovation Enterprise Institution(IEI) approved by the Federal Ministry of Education (FME) and accredited by Nigeria’s National Board for Technical Education (NBTE) to offer a National Innovation Diploma (NID) in Solar Energy Technology. It is accredited by the ECOWAS Center for Renewable Energy and Energy Efficiency (ECREEE) as a recognized institution for training and certification in Solar Photovoltaic (Off Grid) Installation in Nigeria. Offers:
|
| Ashdam Solar Academy | Nigeria, online | Ashdam Solar specialized in design, installation and O&M of off-grid solar systems in Nigeria. They offer a variety of online courses, including basic information of renewable energy generation over system configuration and installment to customer service. Furthermore they have several onsite and blended (online and onsite) courses. One example is the “Solar Queen Program” which explicitly addresses women. |
| Blue Camel Energy Academy | Nigeria, online | The academy provides a range of online and onsite (tailored) training services for the renewable energy industry. Excerpt from the course list:
|
| Ecowatt Nigeria | Nigeria | Ecowatt is a solution provider for sustainable development with focus on affordable and clean energy development. The company offers hands-on training courses and workshops which can vary from standard to tailor-made courses. They also organize trainings and study tours to Germany/Europe.
|
| GreCo Academy | Online | GreCo Academy provides quality training that covers the entire solar energy value chain from finance, marketing, management policy-making and solar engineering. They also offer a variety of free courses. Excerpt of course offer:
|
| National Power Training Institute of Nigeria (NAPTIN) | Nigeria | NAPTIN is a parastatal training institute under the supervision of the Federal Ministry of Power. In this context it offers training and certification among others for generation companies (GenCos) & distribution companies (DisCos), the Transmission Company of Nigeria (TCN) and the Rural Electrification Agency (REA). Excerpt of course offer:
Technical courses:
Non technical courses:
|
| Renewable Energy Technology Training Institute (RETTI) | Online | The training institute provides tailored education within and across the value chain of renewable energy and energy efficiency.
|
| Rubitec Academy | Nigeria | Rubitec Limited is a leading Nigerian renewable energy company. Rubitec Academy is an initiative to partner with academic and training institutions in Nigeria and abroad in developing future leaders in Renewable Energy and Environmental Science through a 1-year workplace training programme. Requirement is experience in the field.
|
Existing Tools
| Name | Nigeria specific | Open source | Description |
|---|---|---|---|
| Regulations for Mini-Grids 2016, Simplified Summary | Yes | Yes | This Guide provides a simplified summary of the regulation primarily for stakeholders in the off grid renewable energy sector. It further provides some context for the regulation – including the definition and types of mini-grids, process and requirements for permit and licenses, project development processes, tariffs and other charges, relationship between stakeholders, compliance and technical requirements, compensation, dispute resolution and current implementation status. |
| Future-proofing the expanding market: Recommendations for improving the bankability of the mini-grid regulatory framework in Nigeria | Yes | Yes | This position paper aims to discuss further the identified gaps/lack of clarity – regulatory and policy – which are slowing down the scaling of the mini-grid sector in Nigeria and to propose ways for further improvement. It has been developed jointly by key stakeholders – developers, financiers, and industry associations – driving Nigeria's mini-grid sector's growth. |
| Solar Power Europe - Operation & Maintenance: Best practice Guidelines Africa Edition | No | Yes | The document assists the reader in developing a general understanding of the topic. The guideline addresses O&M contractors as well as installers, owners, investors, financiers, monitoring tool providers, technical consultants and interested stakeholders in Sub-Saharan Africa. |
Bibliography
- ↑ REAN (2022) Future-proofing the expanding market: Recommendations for improving the bankability of the mini-grid regulatory framework in Nigeria. Multi-stakeholder position paper. Available at: https://rean.org.ng/wp-content/uploads/2022/12/221220-NG-mini-grid-position-paper-1.pdf
- ↑ Solar Power Europe (2021) Operation and Maintenance Best Practice Guidelines / Africa edition. Available at: https://api.solarpowereurope.org/uploads/Africa_edition_O_and_M_Best_Practice_Guidelines_fdea430b58.pdf.
- ↑ USAID & Power Africa. (2022). PA NPSP Off-Grid Market Intelligence Report. https://pdf.usaid.gov/pdf_docs/PA00ZB5X.pdf
