The House of Representatives on Thursday superior a bill searching for to establish a National Authority for Renewable Energy (NARE) because the principal company accountable for regulating and selling renewable vitality growth in Nigeria.
The Electricity Act (Amendment) Bill, 2025, sponsored by Afam Ogene (NDC, Anambra), representing Ogbaru Federal Constituency, was handed for second reading following unanimous help by lawmakers.
Mr Ogene, who can be Chairman of the House Committee on Renewable Energy, mentioned the proposed authority would tackle overlapping duties amongst present establishments and supply a devoted regulatory framework for the renewable vitality sector.
Leading the talk on the bill, he mentioned renewable vitality features at present unfold throughout the Nigerian Electricity Regulatory Commission (NERC), Rural Electrification Agency (REA) and Rural Electrification Fund (REF) can be transferred to NARE.
“This specialisation will improve coordination, reduce institutional overlaps and provide focused direction for the effective development of the renewable energy sector,” Mr Ogene mentioned.
What NARE will do
Under the proposed laws, NARE would regulate and supervise renewable vitality actions whereas selling the event of photo voltaic, wind, hydro, geothermal, biomass and hydrogen vitality.
The authority would even be accountable for selling mini-grid and off-grid electrical energy techniques in rural, unserved and underserved communities, together with islands.
Mr Ogene mentioned the proposed company would additionally facilitate funding within the sector via monetary and regulatory incentives aimed toward encouraging native manufacturing, analysis, innovation and abilities growth.
He mentioned the bill would assist Nigeria diversify its vitality sources whereas increasing entry to electrical energy past areas lined by the national grid.
“We must embrace innovative, decentralised and renewable energy solutions that can reach communities and businesses more efficiently,” he mentioned.
The proposed authority would even be empowered to deal with licensing, establish requirements, promote honest tariffs and supply mechanisms for resolving disputes throughout the renewable vitality market.
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The bill additional offers for collaboration between NARE, NERC and the Federal Ministry of Finance on grid integration and coverage coordination.
40% of rural electrification fund proposed for NARE
A key provision of the bill proposes that 40 per cent of the annual funds out there beneath the Rural Electrification Fund be allotted to NARE to finance renewable vitality growth.
Mr Ogene mentioned the funding association would supply the proposed authority with sources to drive renewable vitality tasks and develop electrical energy entry to communities that stay exterior or poorly served by the national grid.
The bill additionally offers for the switch of related personnel, belongings and ongoing tasks from present establishments to the proposed authority.
Lawmakers subsequently handed the bill for second reading and referred it to the related committee for additional legislative scrutiny.
Mr Ogene has beforehand led the House Committee on Renewable Energy in engagements targeted on Nigeria’s transition to cleaner vitality, together with participation at COP29 in Baku, Azerbaijan, in 2024 and COP30 in Brazil in 2025.
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