Reps push to create body for renewable energy, bill moves to next stage

The House of Representatives on Thursday moved forward with a bill to create a National Authority for Renewable Energy (NARE). This authority will be the main body in charge of regulating and promoting renewable energy in Nigeria.

The Electricity Act (Amendment) Bill, 2025, was put forward by Afam Ogene (NDC, Anambra), who represents Ogbaru Federal Constituency. The bill passed for a second reading after all lawmakers showed their support.

Mr Ogene, who chairs the House Committee on Renewable Energy, explained that this new authority will solve the problem of overlapping duties among current agencies. It will also set up a clear regulatory framework for the renewable energy industry.

While discussing the bill, he pointed out that renewable energy roles now handled by the Nigerian Electricity Regulatory Commission (NERC), Rural Electrification Agency (REA), and Rural Electrification Fund (REF) would be moved to NARE.

“This specialization will improve coordination, reduce institutional overlaps and provide focused direction for the effective development of the renewable energy sector,” Mr Ogene said.

The new law would allow NARE to regulate and supervise renewable energy activities. It would also promote solar, wind, hydro, geothermal, biomass and hydrogen energy.

Additionally, the authority would support mini-grid and off-grid electricity systems in rural areas and communities that lack power, even on islands.

Mr Ogene mentioned that the proposed agency would also encourage investments in the sector. It will offer financial and regulatory incentives for local manufacturing, research, innovation, and skills development.

He believes the bill will help Nigeria diversify its energy sources and increase electricity access beyond the national grid.

“We must embrace innovative, decentralized and renewable energy solutions that can reach communities and businesses more efficiently,” he said.

The proposed authority will also handle licensing, set standards, promote fair tariffs, and create ways to resolve disputes within the renewable energy market.

The bill also suggests that NARE, NERC, and the Federal Ministry of Finance work together on grid integration and policy coordination.

A major part of the bill states that 40 percent of the annual funds from the Rural Electrification Fund should go to NARE to support renewable energy development.

Mr Ogene explained that this funding plan would give the proposed authority the resources it needs to drive renewable energy projects. This will help bring electricity to communities that are not connected or poorly served by the national grid.

The bill also covers the transfer of staff, assets, and ongoing projects from existing agencies to this new authority.

After discussion, lawmakers passed the bill for a second reading and sent it to the relevant committee for more review.

Mr Ogene has previously led the House Committee on Renewable Energy in discussions about Nigeria’s shift to cleaner energy. He has also participated in COP29 in Baku, Azerbaijan, in 2024 and COP30 in Brazil in 2025.