Nigeria's REA Unveils 40 Interconnected 288MW Mini-Grids as NERC Expands Regulation
Nigeria's renewable energy sector is poised for a significant expansion in distributed generation, as the Rural Electrification Agency (REA) has revealed it is actively developing 288 megawatts (MW) of interconnected mini-grid projects. This initiative follows a crucial regulatory expansion by the Nigerian Electricity Regulatory Commission (NERC), which has revised the framework to support larger-scale deployments.
Regulatory Breakthrough Enables Major Capacity Boost
Dr. Abba Aliyu, the Managing Director of REA, disclosed these details during an interview with journalists at the Energy Times Awards 2026, held in Lagos over the weekend. He explained that the agency is advancing 40 interconnected mini-grid projects with a combined capacity of 288MW, all equipped with battery storage systems. This development is made possible under a newly revised regulatory framework that permits higher capacity deployment and structured integration into existing distribution feeders.
"We are now working on 40 interconnected mini-grids that will inject 288MW of new capacity into the grid with battery storage," Aliyu stated. "We could not achieve this without obtaining a regulatory derogation from NERC. However, with the new approval in place, we no longer need to seek derogation approvals. Developers can now secure sites within feeders capable of handling this increased capacity."
Two-Year Engagement Leads to Framework Revision
Aliyu highlighted that this regulatory change results from sustained engagement between REA and NERC over a two-year period. The goal was to update the mini-grid framework to align with emerging realities in distributed energy deployment. "This is a great win for the renewable ecosystem," he emphasized. "It means distributed renewable energy will now play a more significant role. Instead of deploying just 1MW, we can now deploy up to 10MW. You have already seen the interconnected mini-grids we have initiated."
According to Aliyu, the previous regulatory structure capped isolated mini-grids at 1MW, which limited scalability and required developers to seek derogations for larger or interconnected systems. "We have been engaging NERC to review the mini-grid regulation for over two years," he noted. "Specifically, we urged NERC to increase the 1-megawatt cap and create a separate regulation for interconnected mini-grids, as they are expected to play a key role in stabilizing grids and addressing energy access gaps in the future."
Key Changes in the Revised Framework
The revised framework introduces several important updates:
- Increases the cap for isolated mini-grids from 1MW to 5MW.
- Establishes a 5MW ceiling for interconnected mini-grids.
- Harmonizes licensing processes to reduce bureaucratic hurdles.
- Streamlines environmental and social impact assessment procedures.
Aliyu expressed satisfaction with the outcome, stating, "We are happy that after extensive back-and-forth, including over eight letters exchanged, NERC has seen the reason and engaged with stakeholders to release the new regulation." With this framework in place, REA's 288MW pipeline signals a shift toward utility-scale distributed energy projects that can be embedded within existing distribution networks. "It means utility-scale solar energy will now start to emerge across the country. That's what we are witnessing," he added.
Recognition for Leadership and Achievements
At the same event, Dr. Abba Aliyu was honored with an Award of Excellence for transparency and efficiency in executing renewable energy projects. The Editorial Board of Energy Times presented the award, with Board Chairman Yakubu Lawal explaining that it reflects Aliyu's instrumental role in reshaping Nigeria's renewable energy architecture.
"We sought individuals whose work continues to transform the energy landscape and improve lives nationwide," Lawal said. "Dr. Aliyu's achievement of an 85% budget execution rate while managing multi-million dollar international facilities demonstrates that transparency and efficiency can coexist in Nigeria's public sector."
The board credited his leadership with helping position Nigeria to provide electricity access to 17.5 million Nigerians. A key catalyst for the award was Aliyu's successful negotiation and implementation of the Distributed Access through Renewable Energy Scale-up (DARES) project. Funded by a $750 million World Bank facility, DARES is recognized as the largest renewable energy project of its kind globally.
Through engagements with 21 states, Aliyu has strengthened decentralized energy planning by introducing data-driven electrification mapping. Additionally, the board highlighted the Renewable Energy Service Company (RESCO) model as a pivotal policy shift enabling local firms to scale operations within the power sector. "His tenure has also spurred a significant uptick in local manufacturing, with Nigeria now beginning to export solar panels to Ghana," the board added.
