NISO Urges States To Adopt Decentralised Power Systems

A board member of the Nigerian Independent System Operator (NISO), Engr. Lamu Audu has called on state governments to leverage the opportunities provided by the new Electricity Act to establish subnational electricity markets through embedded and decentralised energy systems.

Audu, who is also the Managing Director of Mainstream Energy Solutions Limited, made the call in Abuja recently.

He was represented by the Managing Director and Chief Executive Officer of NISO, Engr. Abdu Bello Mohammed.

According to him, the decentralisation of Nigeria’s power market offers states the chance to drive reliability, reduce transmission losses, and lower energy costs through the adoption of microgrids, off-grid systems, and embedded generation.

“The new Electricity Act empowers states to establish subnational electricity markets. To maximise this opportunity, we must embrace embedded and decentralised energy solutions.

“Encouraging micro-grids, off-grid systems, and embedded generation can reduce transmission losses, improve reliability, and lower the average cost of supply for consumers,” he said.

He stated that transparency and efficiency remain central to NISO’s operations, adding that the agency plays a vital role in ensuring energy is dispatched efficiently, market settlements are transparent, and imbalances are minimised.

“By improving transparency and operational efficiency, we strengthen investor confidence and ensure that tariff adjustments are grounded on verifiable performance data,” he added.

On tariff reform, Audu cautioned that transitioning to a fully cost-reflective tariff must be gradual and linked to visible service improvements.

“Consumers are more willing to pay when they experience reliability and fairness,” he said.

He noted that service-based tariffs and performance-linked adjustments would help build trust in the system.

Audu stressed the need for regulatory predictability, noting that a transparent and consultative tariff review process by the Nigerian Electricity Regulatory Commission (NERC) was essential to ensure stability and reduce political interference.

Speaking on NISO’s ongoing reforms, Audu said the operator is deploying digital platforms to enhance energy flow visibility, improve market coordination, and strengthen reliability through upgraded grid management tools such as the Supervisory Control and Data Acquisition (SCADA) and Energy Management Systems.

“As the electricity landscape evolves toward decentralisation, NISO is ensuring that state and regional markets remain interoperable, fair, and aligned with national grid objectives,” he added.

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