Enugu issues 5MW power licence, boosts private sector participation in electricity market

Enugu State has issued a new 5MW power generation license to Tempo Power Solutions Ltd, authorizing the company to establish a gas-fired plant. This move further aligns with the state’s pursuit of energy independence. The development increases the total licensed generation capacity to 15MW, following the regulatory oversight transfer from the Nigerian Electricity Regulatory Commission (NERC) to the Enugu State Electricity Regulatory Commission (EERC) in October 2024. Enugu is now the first state in Nigeria to achieve this milestone.

The announcement was made during a license presentation ceremony at the EERC headquarters in Enugu, where the Commission’s Chairman, Chijioke Okonkwo, expressed that the move signals rising investor confidence in Enugu’s electricity market. He highlighted how Tempo Power’s quick engagement with the market and its strategic partnerships have made this 5MW project a success, further encouraging private sector participation in the state’s energy sector.

Okonkwo also credited Enugu’s energy sector progress to Governor Peter Mbah’s foundational reforms, including the Enugu State Electricity Policy and Law introduced in 2023. Since the transfer of regulatory power to EERC, the agency has issued several interim licenses, resolving over 60 customer complaints and reviewing multiple license applications across various energy sectors, including generation and distribution.

Tempo Power’s Executive Director, Collins Kalabare, commended the transparent, efficient process facilitated by both the EERC and Governor Mbah’s administration. He assured the public that the company’s power plant would deliver reliable, uninterrupted electricity with cost-reflective tariffs, boosting business and economic growth in Enugu State. The event underscores the growing attractiveness of Enugu as a destination for energy investment, with further licenses under review.

Source: The sun