Reps move to take renewable energy control from NERC, REA
The House of Representatives is considering a bill to amend the Electricity Act, 2023, to divest the Nigerian Electricity Regulatory Commission, the Rural Electrification Agency, and the Rural Electrification Fund of powers to regulate, promote, or undertake the development and utilisation of renewable energy.
In their stead, the bill seeks to establish the National Authority for Renewable Energy to regulate and control the development of the sector in Nigeria.
Sponsored by the member representing Ogbaru Federal Constituency, Anambra State, Victor Ogene, the bill scaled first reading last Tuesday and is expected to open up the renewable energy sector for growth and opportunities if it successfully passes through the entire legislative stages.
A copy of the proposed legislation exclusively obtained by Saturday PUNCH reveals that the House is proposing amendments to Sections 1, 34, 65, 67, 68, 72, and 113 of the Electricity Act, 2023.
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.
The bill enumerates 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.”
Others 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.
Funding of the National Authority is to be drawn from “40% of the Rural Electrification Fund, fees, charges, and other income accruing from licensees, and allocations by the National Assembly.”
