Virtual meeting featuring Nigeria Electricity Regulatory Commission (NERC) sharing their comprehensive experience with implementing and customising the AFUR Enhanced Mini-grid Tariff Tool from 2018 to 2024.
NERC presented a detailed overview of Nigeria's journey with mini-grid tariff regulation and their adoption of the AFUR tool. The presentation covered the evolution from Nigeria's original Mini-Grid Regulations (2016) through amendments in 2023, highlighting key regulatory improvements including portfolio applications, deemed approval timelines, reduced technical losses from 20% to 7%, and monitoring & evaluation frameworks.
NERC shared their transition from their internal v5 tariff tool (adopted 2018) to the enhanced AFUR v6 tool (2024), demonstrating practical customisations including: developer and project detail capture, technical grid loss caps at 4%, working capital settings at 0 days, and specific financing information requirements that proved challenging for developers to complete accurately.
The session highlighted positive experiences including enhanced stakeholder engagement, improved tariff transparency, and streamlined project handling, balanced against challenges such as ongoing learning curves, integration delays, and initial complexity for developers. Key lessons emphasised the importance of continuous feedback loops, thorough compatibility testing, and focused developer training.
NERC outlined their strategic outlook for 2025-2030, focusing on private sector engagement through investment summits, AFUR tool improvements based on user feedback and market data, monitoring & evaluation with mandatory reporting, benchmarking for data insights, transition to state-level regulations under the Electricity Act 2023, and expanded mini-grid deployment with improved regulatory frameworks.
🎯 Key Outcomes
a) Continued refinement of the AFUR tool based on practical implementation feedback from Nigeria's extensive mini-grid experience.
b) Enhanced training programmes for developers focusing on financing information accuracy and tool complexity management.
c) Development of state-level regulatory frameworks aligned with Nigeria's Electricity Act 2023.
d) Strengthened monitoring and evaluation systems with mandatory operational and commercial data reporting.
e) Strategic private sector engagement through targeted investment summits and dialogues.
