Federal government to introduce renewable energy firms to challenge DisCos
The Federal Government, through the Rural Electrification Agency, has announced plans to launch Renewable Energy Service Companies (RESCOs) to compete with existing electricity distribution companies. Abba Aliyu, Managing Director of the agency, revealed this strategy at the Oriental News 2026 Conference in Lagos. The approach aims to address persistent power shortages and bring reliable electricity to underserved communities. The new companies will focus on interconnected mini-grids powered by solar energy and battery storage.
TLDR
- Abba Aliyu stated that RESCOs will provide an alternative to traditional electricity distribution companies by offering 24/7 clean energy through interconnected mini-grids.
- The agency is shifting from isolated mini-grid projects to supporting developers capable of building utility-scale renewable energy networks.
- Agreements are already in place between mini-grid developers and distribution companies in areas where the latter have little or no presence.
- RESCOs may build their own transmission lines and infrastructure in areas not served by distribution companies, subject to approval from the Nigerian Electricity Regulatory Commission.
- Aliyu emphasized the need for cost-reflective tariffs to ensure stable electricity supply and reduce reliance on government subsidies.
