THE Nigerian Electricity Regulatory Commission (NERC) said it has adopted the African Forum for Utility Regulators (AFUR) mini-grid tariff tool to ensure fair and efficient pricing.

The new tool will enhance the process of determining cost-reflective tariffs for mini-grid projects.

In a statement on Friday, December 13, NERC said the tool was developed through a collaboration between the commission and the AFUR, as well as other key stakeholders in the energy sector.

“The tool supports implementing the amended Mini-Grid Regulations 2023 by introducing new features such as portfolio applications, which allow developers to register multiple mini-grid sites under a single application.

“This simplifies processes, fosters efficient regulatory oversight, and benefits from economies of scale, helping to reduce end-user tariffs for mini-grid projects,” it stated.

The commission hinted that the AFUR mini-grid tariff tool is expected to be rolled out across 30 African countries in the coming years.

It is to bring regulatory consistency to the mini-grid subsector, making it easier for project developers to operate across jurisdictions, NERC stressed.

It added that mini-grid developers are required to start using the tool to file permit applications at the Commission effective Monday, December 16, 2024.

A mini-grid is a small-scale, local energy grid that provides electricity to a specific community, village, or group of consumers.

It is typically designed to operate in isolation from the main national grid and to serve a limited number of consumers.

It is often built to explore renewable energy sources such as solar, wind, hydro, and biomass.

Energy experts believe that the development of mini-grids will help mitigate the incessant collapse of the national grid.

The national grid has collapsed nothing less than 10 times this year, leaving households in darkness and businesses to suffer and incur higher energy costs as the pump price of petrol and diesel has surged since the removal of fuel subsidy.

On Thursday, December 12, the national grid broke down again, worsening the plights of Nigerians and it is in doubt if electricity supply has been restored to all parts of the country.