NERC releases mini-grid regulations 2026 to boost power access and investment

THE Nigerian Electricity Regulatory Commission (NERC) has issued the Mini-Grid Regulations 2026, formally outlined in document NERC-R-001-2026.

The new framework sets out comprehensive rules for the development, operation, and oversight of mini-grids across Nigeria. It is designed to expand electricity access, particularly in unserved and underserved communities, while also strengthening safety standards, consumer protection, tariff fairness, and investor confidence.

Under the regulations, mini-grid projects above 100 kilowatts (kW) are required to obtain permits from NERC and operate under licensed conditions. Operators are also mandated to submit regular operational data through quarterly and annual reports.

The policy applies to both isolated mini-grids – those operating independently of Distribution Companies (DisCos)– with capacities of up to 5 megawatts (MW), and interconnected mini-grids, which are linked to existing distribution networks and can scale up to 10 MW.

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It further brings developers, operators, DisCos, and host communities under a unified regulatory structure, while aligning with the Electricity Act 2023 and allowing for state-level regulatory participation where applicable.

Mini-grid systems below 100 kW are subject to registration rather than full permitting, while those above this threshold must secure approval from the commission. NERC is expected to process permit applications within 30 business days.

Reporting obligations are tiered, with operators of mini-grids below 1 MW required to submit annual reports, while those above 1 MW must file quarterly reports. The commission will also monitor operations continuously and may publish sector-wide performance data.

According to NERC, the regulation is aimed at accelerating rural electrification, attracting private sector investment, ensuring fair electricity tariffs, strengthening consumer protection, and improving coordination between mini-grid developers and DisCos.