Nigeria has initiated the restructuring of the Transmission Company of Nigeria (TCN) to establish two distinct entities, with the aim of improving the reliability and efficiency of nationwide power supply,Energy News Africa reports.
Responding to longstanding power supply issues predating President Bola Ahmed Tinubu’s administration, Nigeria is moving to create an Independent System Operator (ISO) as a separate entity. The ISO will be responsible for managing the national grid and other system operations related to market contracts and transactions.
This endeavor, outlined in an Order issued by the Nigerian Electricity Regulatory Commission (NERC) on April 30, directs the Bureau of Public Enterprise (BPE) to fast-track the incorporation of the Independent System Operator by May 31, 2024.
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The new entity, to be known as the Nigerian Independent System Operator of Nigeria Limited (NISO), will assume all market and system operation functions currently handled by TCN, in accordance with the Electricity Act 2023.
NERC has stressed that TCN will transfer its pertinent assets and liabilities to NISO, streamlining market and system operation activities under the new arrangement. The establishment of NISO is anticipated to enhance governance and operational efficiency as per regulatory standards.
Among NISO’s core duties will be the management of assets and liabilities related to market and system operations on behalf of market participants and consumer groups. Additionally, the ISO will oversee negotiations for ancillary services with independent power producers and generation licensees, contributing further to the optimization of the power sector.
In summary, the formation of NISO marks a significant stride in tackling Nigeria’s power supply challenges and promoting a more resilient and responsive energy infrastructure.
