Delta State Government has announced plans to establish an independent electricity market through the creation of Delta State Electricity Regulatory Commission and Delta State Rural Electrification Agency before the end of the year.
The announcement was made during a panel session at the Delta State Economic and Investment Summit, where government officials, regulators and private sector stakeholders outlined the state’s roadmap for transforming the electricity sector and attracting new investments.
The participants said the planned reforms were designed to strengthen the state’s electricity regulatory framework, expand access to power, particularly in rural communities and create an enabling environment for private sector participation.
The initiative is also expected to improve electricity supply, stimulate economic growth and position Delta State as a leading destination for energy investment in Nigeria.
According to the panellists, the two institutions are expected to become operational before the end of 2026, following ongoing engagements between Delta State Government, Ministry of Energy and private investors.
They said the move is aimed at enabling the state to regulate electricity generation, distribution and supply under the provisions of the Electricity Act, which empowers states to establish and manage their own electricity markets.
The officials revealed that the government would also conduct public consultations before unveiling the state’s electricity market framework.
Panellists said Delta State is strategically positioned to build a viable electricity market due to its abundant natural gas reserves and significant power generation capacity.
They noted that the state hosts Transcorp Power’s 1,000-megawatt power plant, which could meet a substantial portion of Delta’s electricity demand if supported by adequate distribution infrastructure.
They, however, identified inadequate electricity distribution as the biggest obstacle to unlocking the state’s energy potential.
A representative of Transcorp Power attributed the country’s broader electricity challenges to inadequate gas supply and transmission bottlenecks.
Discussions also focused on gas flaring and opportunities for investors. Panellists advised prospective investors to engage directly with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which oversees the Gas Flare Commercialisation Programme and maintains a desk office in Delta State.
They noted that gas flaring in Nigeria had reduced significantly from over one billion standard cubic feet per day to about 500 million standard cubic feet through gas-to-power projects, modular gas utilisation initiatives and other commercial solutions.