Reps move to establish national authority for renewable energy, pass bill for second reading

The House of Representatives on Thursday advanced a bill seeking to establish a National Authority for Renewable Energy (NARE) as the principal agency responsible for regulating and promoting renewable energy development in Nigeria.

The Electricity Act (Amendment) Bill, 2025, sponsored by Afam Ogene (NDC, Anambra), representing Ogbaru Federal Constituency, was passed for second reading following unanimous support by lawmakers.

Mr Ogene, who is also Chairman of the House Committee on Renewable Energy, said the proposed authority would address overlapping responsibilities among existing institutions and provide a dedicated regulatory framework for the renewable energy sector.

Leading the debate on the bill, he said renewable energy functions currently spread across the Nigerian Electricity Regulatory Commission (NERC), Rural Electrification Agency (REA) and Rural Electrification Fund (REF) would be transferred to NARE.

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

What NARE will do

Under the proposed legislation, NARE would regulate and supervise renewable energy activities while promoting the development of solar, wind, hydro, geothermal, biomass and hydrogen energy.

The authority would also be responsible for promoting mini-grid and off-grid electricity systems in rural, unserved and underserved communities, including islands.

Mr Ogene said the proposed agency would also facilitate investment in the sector through financial and regulatory incentives aimed at encouraging local manufacturing, research, innovation and skills development.

He said the bill would help Nigeria diversify its energy sources while expanding access to electricity beyond areas covered by the national grid.

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

The proposed authority would also be empowered to handle licensing, establish standards, promote fair tariffs and provide mechanisms for resolving disputes within the renewable energy market.

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The bill further provides for collaboration between NARE, NERC and the Federal Ministry of Finance on grid integration and policy coordination.

40% of rural electrification fund proposed for NARE

A key provision of the bill proposes that 40 per cent of the annual funds available under the Rural Electrification Fund be allocated to NARE to finance renewable energy development.

Mr Ogene said the funding arrangement would provide the proposed authority with resources to drive renewable energy projects and expand electricity access to communities that remain outside or poorly served by the national grid.

The bill also provides for the transfer of relevant personnel, assets and ongoing projects from existing institutions to the proposed authority.

Lawmakers subsequently passed the bill for second reading and referred it to the relevant committee for further legislative scrutiny.

Mr Ogene has previously led the House Committee on Renewable Energy in engagements focused on Nigeria’s transition to cleaner energy, including participation at COP29 in Baku, Azerbaijan, in 2024 and COP30 in Brazil in 2025.