Nigeria Feed-in Tariff for Renewable Energy Sourced Electricity

The government of Nigeria approved the feed-in tariff regulation in November 2015. The regulation enters into force in February 2016 and supersedes Multi-Year Tariff Order (MYTO) II (2012-2017) .

Aiming to make use of Nigeria`s vast and mostly untapped potential for renewable energy, the intent is to stimulate investment in the sector. By 2020, a total of 2,000 MW shall be generated through renewables like biomass, small hydro, wind and solar.

According to the new regulation, the electricity distribution companies (Discos) will be obliged to source at least 50% of their total procurement from renewables. The remaining 50% was set to be sourced from the Nigerian Bulk Electricity Trading Company. Moreover, a distinction was made between small and large generation plants. While electricity procured from small plants (between 1 MW and 30 MW) will automatically be integrated as renewable energy, the Commission will initiate a competitive bid process for larger renewable energy projects (more than 30 MW). Furthermore, the new feed-in tariff regulation already determines the procedure for auctions for the larger projects.

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