The Nigerian Electricity Regulatory Commission (NERC) has released the Mini-Grid Regulations 2026, outlining a new framework to guide the development and operation of mini-grids across the country.
The regulation, contained in document number NERC-R-001-2026, is designed to expand electricity access—particularly in unserved and underserved communities—while ensuring safety, fairness, and protection for investors.
Under the new rules, mini-grids with a capacity above 100 kilowatts (kW) must obtain permits from NERC and be operated by licensed entities. These operators are also required to submit regular reports, including quarterly and annual updates.
The regulation applies to both isolated and interconnected mini-grids. Isolated mini-grids, which operate independently of distribution company (DisCo) networks, can have capacities of up to 5 megawatts (MW). Interconnected mini-grids, which are integrated with existing distribution networks, are permitted up to 10 MW.
It covers all key stakeholders, including developers, operators, distribution companies, and host communities. The framework is also aligned with the Electricity Act 2023 and allows for state-level regulatory involvement where applicable.
While mini-grids below 100 kW can be registered, those exceeding this threshold must secure a permit. NERC has stated that permit applications will be processed within 30 business days.
In terms of compliance, operators of mini-grids below 1 MW are required to submit annual reports, while those above 1 MW must file quarterly reports. NERC will also carry out continuous monitoring and may publish data on the sector.
According to the commission, the regulation is intended to accelerate rural electrification, attract private investment, ensure fair pricing, protect consumers, and strengthen coordination between mini-grid developers and distribution companies.
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