 has issued the Mini-Grid Regulations 2026, aimed at expanding electricity access especially in unserved and underserved areas while ensuring safety, fairness, and investment protection.){kind=link}
The Nigerian Electricity Regulatory Commission (NERC) has issued the Mini-Grid Regulations 2026, aimed at expanding electricity access especially in unserved and underserved areas while ensuring safety, fairness, and investment protection.
According to a post on NERC’s social media handle, the regulatory document, numbered NERC-R-001-2026, provides a comprehensive framework for the development, operation, and regulation of mini-grids in Nigeria.
The Commission stated that the regulation applies to isolated mini-grids that operate independently of DisCo networks, with a capacity of up to 5 megawatts (MW), as well as interconnected mini-grids, which are linked to and coordinated with existing distribution networks, with a capacity of up to 10MW.
NERC also noted that data from the Nigerian Independent System Operator (NISO) indicate that the national average Transmission Loss Factor (TLF) was 8.71% in 2024 but declined to 7.24% in 2025.
However, the 7.24% still exceeds the 7% benchmark approved by the Commission under the Multi-Year Tariff Order (MYTO).
The Commission stated that the order, which takes effect from 13 April 2026, is backed by the provisions of the Electricity Act 2023, which empower NERC to regulate, monitor, and ensure efficiency in the electricity market.
According to the Order, NISO is expected to install smart meters at all boundary regional interconnection points by December 2026 to accurately measure energy flows across the transmission network.
NISO is also required to measure and document all energy flows through power transformers at transmission substations and submit quarterly reports on TLF to NERC on a regional basis.
The Order mandates the Transmission Company of Nigeria (TCN) to submit an action plan by July 2026 on reducing TLF to within the approved 7% benchmark across regions.
TCN is expected to ensure that TLF across transmission regions does not exceed 6.5% by December 2026.
According to NERC, the Order is designed to strengthen accountability in transmission operations and support improved grid performance through structured loss reporting.
The regulation covers developers, operators, distribution companies, and host communities and aligns with the Electricity Act 2023 and accommodates state-level regulation where applicable.
Mini-grids below 100 kilowatts (kW) can be registered, while those above 100kW require a permit from NERC.
The Commission is expected to grant permits within 30 business days following application.
Operators are required to submit annual reports for mini-grids below 1MW and quarterly reports for those above 1MW and NERC will conduct ongoing monitoring and may publish sector data.
Overall, the regulation aims to accelerate rural electrification, attract private investment, ensure fair tariffs and consumer protection, and promote coordination between mini-grid developers and DisCos.