- Olalere Odusote, the Energy and Mineral Resources Commissioner for Lagos State, affirms that the state is fully prepared to implement the 2023 Electricity Act.
- The administration led by Babajide Sanwo-Olu is dedicated to establishing a sustainable Lagos Electricity Market with a strong commercial framework.
- The goal is to ensure the economic viability of the electricity sector and promote the socio-economic development of Lagos State.
The Energy and Mineral Resources Commissioner for Lagos State, Olalere Odusote, has expressed confidence in the state’s ability to implement the 2023 Electricity Act.
In a recent statement shared via social media, he said that the administration led by Babajide Sanwo-Olu is fully committed to driving the implementation of a robust Lagos Electricity Market.
This includes establishing a commercially viable framework that ensures the sector’s economic sustainability and contributes to the socio-economic development of Lagos State.
A part of the June 15 statement written by the Honorable Commissioner read thus:
- “President Bola Ahmed Tinubu recently assented to the Electricity Act 2023. Lagos State has been steadily anticipating this and has taken proactive steps toward implementing an effective institutional framework for a viable Lagos Electricity Market which fully caters to the needs of its residents.
- “The BOS administration, in 2022, developed a comprehensive Integrated Resource Plan (IRP), the first of its kind by a subnational government, which clearly outlines the current and future electricity needs of the State and identifies the infrastructure gap required (fuel, generation, transmission, and distribution infrastructure requirement) to meet same in the short, medium and long term.
- “The IRP seeks to increase the overall energy security for Lagos State and provide guidance for development planning for the next 20 years to meet an anticipated 400% increase in peak electricity demand by 2040.”
Recall that President Bola Ahmed Tinubu recently signed the 2023 Electricity Act into law. The implication of the new law is the de-monopolization of Nigeria’s electricity generation, transmission, and distribution at the National level.
The law empowers states, companies, and individuals to generate, transmit and distribute electricity. It also mandates how the Nigerian Electricity Regulatory Commission (NERC) can transition regulatory responsibilities from itself to state regulators when they are established.
So, until a state has passed its electricity market laws, NERC will continue to regulate electricity business exclusively carried out in those states. Under the 2023 Electricity Act, electricity generating companies will be mandated to either generate power from renewable energy sources, purchase power generated from renewable energy, or procure any instrument representing renewable energy generation.
The Electricity Act also mandates the imposition of renewable purchase obligations on distribution or supply licensees.
What you should know
The 2023 Electricity Act allows anyone to construct, own or operate an undertaking for generating electricity not exceeding 1 megawatt (MW) in aggregate at a site or an undertaking for the distribution of electricity with a capacity not exceeding 100 kilowatts (KW) in aggregate at a site, or such other capacity as NERC may determine from time to time, without a license.