Tunde Bakare
The National Assembly is pushing for the amendment of the Electricity Act, 2023 to remove regulatory power from the Nigerian Electricity Regulatory Commission (NERC), Rural Electrification Agency, and Rural Electrification Fund over renewable energy.
The House of Representatives which is spearheading the move is seeking to establish the National Authority for Renewable Energy (NARE) to regulate and guide the development of the sector in Nigeria.
The contents of the proposed legislative document revealed that the House is proposing amendments to Sections 1, 34, 65, 67, 68, 72, and 113 of the Electricity Act, 2023.
Additionally, the Bill proposes a new section to the existing Section 164 to read, “Establishment of the National Authority for Renewable Energy.”
Section 164 (1) provides, “There is established the National Authority for Renewable Energy (in this Act referred to as the National Authority, with NARE as its acronym), which shall be a body corporate with perpetual succession and a common seal, and which can sue or be sued in its corporate name.”
If established, NARE shall be independent and shall collaborate with NERC and other relevant agencies and levels of government in border matters.
It explains the functions of NARE when established to include: “Provide and implement policies and frameworks to regulate and guide the development and utilisation of renewable energy sources and services, promote the use of renewable energy, and diversify supplies of the sources.”
Other provisions include to “Create, promote, and regulate efficient renewable energy industry and market structures, and to ensure the optimal use of resources for the promotion of renewable energy services.
“Establish appropriate operating codes, enforce compliance, and monitor all operations and activities within the renewable energy sector, and apply sanctions for all infractions of operational rules for generation, distribution, and utilisation of renewable energy.”
The Bill further proposes the establishment of a Governing Board for the National Authority, which shall consist of a Chairman to be appointed by the President and a member each representing the six geo-political zones.
These zonal members are to be appointed by the President on the recommendation of the Minister of Power.
The Board shall include a Managing Director who doubles as the Chief Executive Officer, as well as representatives from the Ministries of Power, Environment, and Finance, the Central Bank of Nigeria, the Renewable Energy Association of Nigeria, and Women in Renewable Energy.
The financing for the National Authority shall be sourced from “40 per cent of the Rural Electrification Fund, fees, charges, and other income derived from licensees, along with appropriations by the National Assembly.”
The proposed legislation is anticipated to be scheduled for debate at the plenary session in two weeks.
The NERC, traditionally hold the authority to manage, promote, and advance the development and application of renewable energy sources within the country.
According to the lawmakers, under the proposed amendment, the responsibilities would be reassigned to the newly envisioned NARE to regulate and guide the development of the sector in Nigeria.
The Bill was sponsored by Hon. Victor Ogene, member representing Ogbaru Federal Constituency, Anambra State and passed first reading last Tuesday and is expected to open up the renewable energy sector for sustainable growth and opportunities should it be enacted.