NISO Seeks State Technical Working Group to Drive Electricity Market Integration

"The proposed working group would provide a structured platform for technical cooperation, coordination and information sharing among stakeholders as states develop their electricity markets under the provisions of the Act." Mohammed 

.... Emphasizes the need to harmonise technical standards, improve data sharing and strengthen coordination between state electricity markets and the interconnected national grid to ensure the reliability and efficiency of electricity supply.

The Nigerian Independent System Operator (NISO) has proposed the establishment of a NISO–State Technical Working Group to strengthen collaboration between the national grid operator and state stakeholders towards developing an integrated electricity market in line with the Electricity Act 2023.

The Managing Director/Chief Executive Officer of NISO, Engr. Abdu Bello Mohammed, FNSE, made the proposal on Thursday at the National Workshop on the Electricity Act 2023, held at the State House Auditorium, Presidential Villa, Abuja.

Mohammed said the proposed working group would provide a structured platform for technical cooperation, coordination and information sharing among stakeholders as states develop their electricity markets under the provisions of the Act.

He also proposed an annual energy planning summit involving NISO and state governments to assess available energy resources, forecast electricity demand and promote coordinated planning across the country's evolving electricity market.

The NISO chief emphasised the need to harmonise technical standards, improve data sharing and strengthen coordination between state electricity markets and the interconnected national grid to ensure the reliability and efficiency of electricity supply.

According to him, effective integration would require stakeholders to adopt a coordinated approach to electricity planning and market development, particularly as states assume greater responsibilities in the electricity sector.

He outlined other proposals, including the development of a national state coordination framework, the institutionalisation of integrated energy planning and the adoption of a phased implementation roadmap to guide the transition towards a more coordinated electricity market.

Mohammed explained that the objective was not to centralise electricity markets but to ensure that state electricity systems and the national grid operate in a coordinated manner within a reliable and efficiently managed power sector.

He noted that the successful implementation of the Electricity Act 2023 would depend largely on effective collaboration among relevant institutions, state governments and other electricity market participants.

The Act provides a framework for the participation of states in electricity generation, transmission, distribution and regulation, creating opportunities for the development of subnational electricity markets.

However, the emergence of multiple state electricity markets also underscores the need for effective coordination, compatible technical standards and integrated planning to maintain grid stability and facilitate efficient electricity trading.

The proposed NISO–State Technical Working Group and annual energy planning summit are expected to provide platforms for addressing these challenges while supporting the development of a more coordinated and sustainable electricity market.

Mohammed's proposals underscore NISO's emphasis on collaboration and integrated planning as Nigeria advances electricity market reforms under the Electricity Act 2023.