Regulations for the Procurement of Generation Capacity 2014
Regulation · Energy
Policy date: 2014-01-01
Regulations define procedures for procuring new electricity generation capacity through competitive bidding. They target independent power producers, distribution companies, and investors. This aims to attract private investment and improve electricity supply.
Regulations for the Procurement of Generation Capacity 2014
What Is This Policy?
NERC regulations that define the procedures for procuring new electricity generation capacity in Nigeria, including competitive bidding, power purchase agreements, and the terms under which new generation projects are developed and connected to the grid.
Who Does It Target?
Independent power producers (IPPs) Distribution companies procuring power The Bulk Electricity Trading Company (NBET) Project finance institutions and investors
What Does It Aim to Achieve?
Attract private investment in electricity generation by providing a transparent, competitive, and bankable procurement framework for new power generation capacity.
Key Features
Competitive Bidding: Transparent tender processes for new generation capacity Power Purchase Agreements: Standard terms for long-term contracts between generators and offtakers Grid Connection: Requirements for connecting new generation to the transmission network Capacity Payment: Framework for paying generators for available capacity in addition to energy delivered Due Diligence: Financial and technical qualification requirements for project developers
Current Status
Rollout Stage: Active Coverage: All new generation procurement Lead Agency: NERC Key Entities: NBET as the bulk buyer, TCN for grid integration
How to Access
Developers participate through structured procurement processes. Respond to NERC-approved capacity procurement calls Meet pre-qualification and technical requirements Negotiate and execute power purchase agreements
Official Resources
Website: nerc.gov.ng Contact: NERC, Abuja
Legal Framework
Issued under the regulatory powers of the Nigerian Electricity Regulatory Commission (NERC) pursuant to the Electric Power Sector Reform Act (EPSRA) 2005. Operates alongside the Electricity Act 2023, the Public Procurement Act 2007, and the Infrastructure Concession Regulatory Commission (Establishment, etc.) Act. Aligns with World Bank Electricity Sector Reform guidelines and IRENA frameworks for competitive power procurement.