Power Generation Licensing Requirements in Nigeria. Investors Guide

Ref: RIL/NIG/POW/17/0114                                                     Updated July 2017

TECHNICAL REQUIREMENTS FOR THE PROCESSING OF A GENERATION LICENCE FOR A 100MW PV SOLAR POWER PLANT

 Richflood International is an Organisation duly registered with the Corporate Affairs commission (CAC) in Nigeria, does business in Africa and help investors get started with regulatory procedures, agencies and compliance requirements. Richflood is accredited by and registered with Ministries, Departments and Agencies in Nigeria for its different business segments and services rendered to investors and prospecting investors in Nigeria. The company comprises teams of experts for different aspects of client demands.

This document is prepared as a guide for investment in the power sector in Nigeria. This is not a comprehensive a-z document but can serve as a start point for interested investors.

For further guidance, assistance or free enquiries please call the available number and send an email to the managing consultant (power sector) comfort@richflood.com

REQUIREMENTS FOR THE GENERATION LICENSE (NERC)

The process for a Generation License cannot be completed without a signed Power Purchase Agreement (PPA) from the Nigerian Electricity Bulk Trading PLC (NBET) for an On-grid Power Plant.

 

LEGAL

  1. 1.    Duly completed Generation License Application Form;
  2. 2.    Certificate of Incorporation from CAC including all necessary Memorandum of Association, Deed of Partnership and relevant forms;
  3. 3.    Tax Clearance Certificate for the past three (3) years or as applicable to newly registered companies;
  4. 4.    Certified Audited Financial Statements and Accounts for the past three (3) years
  5. 5.    Environmental Impact Assessment Report and Approval;
  6. 6.    Power Purchase Agreements (PPA) from the Nigerian Bulk Electricity Trader Plc (NBET);
  7. 7.    Publication in one local and one national newspaper; (Comes in later in the Licensing Process)
  8. 8.    Receipt of payment for License Processing Fees (N100,000.00 only);
  9. 9.    Site Plan and Certificate of Occupancy for the Land of the project. 
  10. 10.                  Evidence of consent or Permits from other relevant agencies for the project as required.

 

FINANCIALS

  1. Tariff Methodology and Calculations
  2. Short Term Cash Flow Projection
  3. Medium Term Cash Flow Projection
  4. Source of Fund and funding arrangements
  5. Investment Plans
  6. Asset Base
  7. Risk Management Strategy
  8. Management experience and depth
  9. MoU with or Letter of intent from Engineering, Procurement and Construction (EPC) Contractor.
  10. MoU with or Letter of Intent from the technical partner.

TECHNICAL

  1. Site Location Map  - drawn to scale – showing roads, railway lines, rivers, etc;
  2. Technical details of the project showing, Total Capacity(MW), Annual Generation, Station Load, Voltage levels, etc;
  3. Google map of site;
  4. CVs of all Directors, Management Personnel of the company, details of experience in and knowledge of the electricity industry;
  5. Evacuation Studies Report;
  6. Letter of Approval to connect from TCN;
  7. Single line diagram of station including connections to transmission facilities;
    1. Detailed Diagram of plant arrangements on site
    2. Project Plan and Commissioning Schedule;

 Diagram showing arrays of solar panels and unit efficiency.

  1. Radiation/Energy Yield Report.

**All the aforementioned document are submited in Triplicate.

REQUIREMENTS FOR POWER PURCHASE AGREEMENT (NBET)

The following are required to complete the Due Diligence Process for the signing of a Power Purchase Agreement (PPA) with NBET.

1.    Land:

  • Registered title deed to project site land – Certificate of Occupancy (CofO).
  • Notarized sale agreement of the project site land.
  • Deed of assignment / gift of the project site land.
  • Evidence of submission of a title deed to a relevant land processing agency regarding the project site land.

2.    EIA: Complete Environmental Impact Assessment (EIA) and must meet the Federal Ministry of Environment Standards.

3.    Evacuation Study Report & TCN Approval Letter: Complete comprehensive Evacuation Study at the project site must be completed and the project must get a Provisional Evacuation Approval and Grid Connection Agreement from the Transmission Company of Nigeria (TCN).

4.    Radiation/Energy Yield Report for the site.

5.    Evidence of consent or Permits from other relevant agencies for the project as required.

6.    Certificate of Incorporation from CAC including all necessary Memorandum of Association, Deed of Partnership and relevant forms.

7.    Tax Clearance Certificate for the past three (3) years or as applicable to a newly registered company.

8.    Certified Audited Financial Statements and Accounts for the past three (3) years.

9.    Duly Completed NBET Due Diligence Forms.

**All the aforementioned document are submited in Triplicate.

Please feel free to contact (call or email) us for further clarification. Please visit relevant government agencies for detailed information on your requirement.