The House of Representatives on Thursday superior a bill in search of to establish a National Authority for Renewable Energy (NARE) because the principal company accountable for regulating and selling renewable power improvement 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 also be Chairman of the House Committee on Renewable Energy, stated the proposed authority would handle overlapping tasks amongst current establishments and supply a devoted regulatory framework for the renewable power sector.
Leading the talk on the bill, he stated renewable power features presently unfold throughout the Nigerian Electricity Regulatory Commission (NERC), Rural Electrification Agency (REA) and Rural Electrification Fund (REF) could 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 stated.
What NARE will do
Under the proposed laws, NARE would regulate and supervise renewable power actions whereas selling the event of photo voltaic, wind, hydro, geothermal, biomass and hydrogen power.
The authority would even be accountable for selling mini-grid and off-grid electrical energy methods in rural, unserved and underserved communities, together with islands.
Mr Ogene stated the proposed company would additionally facilitate funding within the sector by monetary and regulatory incentives geared toward encouraging native manufacturing, analysis, innovation and abilities improvement.
He stated the bill would assist Nigeria diversify its power 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 stated.
The proposed authority would even be empowered to deal with licensing, establish requirements, promote truthful tariffs and supply mechanisms for resolving disputes throughout the renewable power market.
READ ALSO: Nigeria, Thailand to expand bilateral ties in technology, agriculture, renewable energy
The bill additional supplies 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 accessible below the Rural Electrification Fund be allotted to NARE to finance renewable power improvement.
Mr Ogene stated the funding association would offer the proposed authority with sources to drive renewable power tasks and develop electrical energy entry to communities that stay outdoors or poorly served by the national grid.
The bill additionally supplies for the switch of related personnel, belongings and ongoing tasks from current 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 centered on Nigeria’s transition to cleaner power, together with participation at COP29 in Baku, Azerbaijan, in 2024 and COP30 in Brazil in 2025.
Discover extra from Premium Times Nigeria
Subscribe to get the newest posts despatched to your e mail.
