FG Moves to Set Up Renewable Energy Firms to Challenge DisCos

The Federal Government, through the Rural Electrification Agency, says it plans to build Renewable Energy Service Companies that will compete directly with electricity distribution companies over the next 10 to 15 years. The plan was disclosed by the REA Managing Director at a news conference in Lagos. It is part of a broader effort to reduce persistent power outages and extend electricity access to underserved communities across Nigeria. Under the new approach, the agency wants developers to build utility-scale mini-grid clusters instead of isolated projects. These networks will use solar power and battery storage to provide round-the-clock electricity for communities that are poorly served by the national grid. The REA also says the new model will allow operators to build their own lines or work out territorial handovers with DisCos where service is absent. Agreements are already being prepared under the Distributed Access for Renewable Energy Scale-Up initiative.

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