5 Role of Law in the Energy Transitions in Africa …
159
networks to serve grid-connected urban and rural consumers.
91 Notwithstanding, NERC is acting ultra vires by regulating isolated off-grid rural
IEDNs and isolated mini-grids because these are essentially off-grid electricity systems for rural and remote communities, which fall under the
regulatory purview of the States.
Lastly, EPSRA provides a narrow definition of the power to promote
transmission systems by putting the same under NERC’s exclusive
control.
92 It is submitted that under the CFRN, the States are allowed
to promote their own transmission systems outside the grid. Thus, any
interpretation under EPSRA that only the Federal Government can
promote a grid system to the exclusion of the States is faulty when
Paragraph 14 of the Concurrent Legislative List is brought into consideration. By virtue of s 1 (3) of the CFRN, the provisions of EPSRA
to the extent that they impede on the States’ constitutional powers to
exclusively promote and regulate off-grid electricity, is unconstitutional.
EPSRA cannot purport to centralize electricity regulation where same,
albeit unsatisfactorily stipulated, has already been decentralized by the
CFRN.
5.3.2.3 Conflict Between EPSRA and NERC Regulations
Interestingly, there are some conflicts existing between EPSRA and some
subsidiary NERC regulations, which this chapter has described as an
example of the ‘Inter-conflict’ of laws. This ‘inter-conflict’ is of negative significance because it creates regulatory risks in terms of uncertainty
and confusion in the electricity regulatory processes for NERC, operators
and even private sector investors. This is unhelpful for NESI as there
is an increasing need to access private sector financing and investment
for electricity projects in order to boost access to electricity and alleviate
energy poverty. These regulatory risks potentially scare private investors
away because they tend to consider regulatory risks as one of the indices
for evaluating investment risks within a capital-intensive industry such
91 For the definitions of isolated off-grid urban IEDN, embedded IEDN and interconnected
mini-grids, see IEDN Regulations, s 25 and Mini-Grid Regulations, s 3.
92 EPSRA, s 32 (1)(b) and (2)(d).
159
networks to serve grid-connected urban and rural consumers.
91 Notwithstanding, NERC is acting ultra vires by regulating isolated off-grid rural
IEDNs and isolated mini-grids because these are essentially off-grid electricity systems for rural and remote communities, which fall under the
regulatory purview of the States.
Lastly, EPSRA provides a narrow definition of the power to promote
transmission systems by putting the same under NERC’s exclusive
control.
92 It is submitted that under the CFRN, the States are allowed
to promote their own transmission systems outside the grid. Thus, any
interpretation under EPSRA that only the Federal Government can
promote a grid system to the exclusion of the States is faulty when
Paragraph 14 of the Concurrent Legislative List is brought into consideration. By virtue of s 1 (3) of the CFRN, the provisions of EPSRA
to the extent that they impede on the States’ constitutional powers to
exclusively promote and regulate off-grid electricity, is unconstitutional.
EPSRA cannot purport to centralize electricity regulation where same,
albeit unsatisfactorily stipulated, has already been decentralized by the
CFRN.
5.3.2.3 Conflict Between EPSRA and NERC Regulations
Interestingly, there are some conflicts existing between EPSRA and some
subsidiary NERC regulations, which this chapter has described as an
example of the ‘Inter-conflict’ of laws. This ‘inter-conflict’ is of negative significance because it creates regulatory risks in terms of uncertainty
and confusion in the electricity regulatory processes for NERC, operators
and even private sector investors. This is unhelpful for NESI as there
is an increasing need to access private sector financing and investment
for electricity projects in order to boost access to electricity and alleviate
energy poverty. These regulatory risks potentially scare private investors
away because they tend to consider regulatory risks as one of the indices
for evaluating investment risks within a capital-intensive industry such
91 For the definitions of isolated off-grid urban IEDN, embedded IEDN and interconnected
mini-grids, see IEDN Regulations, s 25 and Mini-Grid Regulations, s 3.
92 EPSRA, s 32 (1)(b) and (2)(d).