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The federal government, through the Nigerian Electricity Regulatory Commission (NERC), has issued an order mandating all electricity generation companies connected to the grid to implement Free Governor Control (FGC) across their generating units.
It further warned that non compliance would attract severe penalties, including possible disconnection from the grid.
The order, which is referenced as NERC/2025/094, was signed on August 26, by the commission’s vice chairman, Musiliu Oseni, and the commissioner for legal, licensing, and compliance, Dafe Akpeneye.
The directive will become effective on September 1.
In the context of power generation, a governor is a control system that regulates the speed or output of a turbine or generator, primarily to maintain a stable speed and frequency.
The Free Governor Control (FGC) is a specific operational mode where the governor is allowed to freely adjust a generator’s output in response to fluctuations in grid frequency.
This mode enables the generator to help stabilize the grid by automatically increasing or decreasing output to align with demand and keep frequency within a safe range.
It was mandated that any Generating Company (GenCo) that fails to integrate and activate FGC on all of its generating units by November 30 will be subject to a penalty equivalent to a prorated 10% of the invoice for the non-compliant unit.
Additionally, any generating unit that records 90 consecutive days of non-compliance with FGC will be disconnected from the national grid.
The commission said the measure was necessary to stem repeated system disturbances and enforce strict compliance with the Grid Code.
According to the commission, the order seeks to establish a structured framework for enhancing power generation reliability and stability of Nigeria’s power grid by ensuring strict compliance with operational frequency limits, implementing transparent monitoring mechanisms, and penalties for violations of the Grid Code.
NERC said it is mandated by section 34(1)(e) of the Electricity Act 2023 to ensure the safety, security, reliability, and quality of service in the production and delivery of electricity to consumers, while section 34(2)(b) of the Act empowers it to establish or approve operating codes and standards to ensure safety, security, reliability, and quality in the production and delivery of electricity services in the NESI.
The regulator reminded operators that section 12.6.2 of the Grid Code requires every generating unit to be fitted with a fast acting governor system capable of regulating turbine speed and adjusting output when frequency deviates.
It stated, “Section 12.6.2 of the Grid Code for the Nigerian Electricity Transmission System requires all generating units to be fitted with fast acting FGC that is capable of regulating turbine speed and adjusting power output based on frequency deviation exigencies, i.e., primary control.
“The FGC shall be sufficiently damped for both isolated and interconnected operation modes.
“The FGC and any other superimposed control loop load control, gas turbine temperature limiting control, etc. shall contribute to the primary control to maintain the unit within the generating unit’s capability limits.
“Furthermore, the primary control characteristics shall be maintained under all operational conditions.
“Where a generating unit becomes isolated from the system but is still available to supply demand, the generating unit must be able to provide primary control to maintain frequency and voltage.”
The regulator recalled that the national grid experienced eight incidents of grid disturbances in 2024, which resulted in five full system failures and three partial system failures, blaming the GenCos.
NERC noted, “The incident reports filed by the Transmission Company of Nigeria Plc identified non-compliance with the provisions of the Grid Code by some generation companies as contributory factors.
“The performance review of the operations of grid-connected GenCos in 2024 revealed that there was significant failure on the activation of FGC.”
The order was issued to ensure the mandatory deployment and activation of FGC in all generating units.
The goal is to enhance the reliability of power generation and the stability of grid operations, and to ensure that Generating Companies (GenCos) comply with Sections 12.6.2 and 15.8.3 of the Grid Code for the Nigerian Electricity Transmission System (NETS).
It is also intended to promote strict adherence to FGC requirements to minimize the risk of system disturbances, encourage stable grid operations, and establish penalties for non-compliance.
The commission has mandated that all grid connected GenCos must install a fast acting FGC in all generating units, which must be fully operational by November 30.
It added, “GenCos shall at all times activate and operate the FGC in real time without any time delays.
“GenCos are mandated to procure and supply a Grade Level 5 metering system with IoT based monitoring capabilities for each generating unit and communicate readiness for installation to the NISO by 31 October.
“The meters are required to have a minimum capability of measuring active power, reactive power, power factor, generator terminal voltage, and frequency.
“The Nigerian Independent System Operator shall install and integrate all IoT metering systems provided by the GenCos within 20 days of receiving notification of readiness for meter installation from each GenCo.
“NISO shall actively monitor and enforce strict compliance with the operationalisation of FGC mode in generating units.
“This shall be achieved through real time data obtained from the Grade Level 5 IoT meters, ensuring accurate tracking, validation, and assessment of the performance of generating units.
“NISO shall maintain real-time monitoring and record hourly compliance reports on the operation of FGC across all generating units.
“NISO shall compile and file monthly reports with the commission on the status of compliance with the provisions of the Grid Code on FGC to facilitate regulatory oversight.”
The regulator declared, “Any GenCo that fails to comply with the provisions of sections 12.6.2 and 15.8.3 of the Grid Code on the integration and activation of FGC on all generating units by 30 November shall be liable to a penalty of a prorated 10 per cent of the invoice associated with the defaulting generating unit for the duration during which it was not operated with its FGC activated, that is, FGC non compliant.
“Where a generating unit records 90 consecutive days of FGC non compliance, the affected generating unit shall be disconnected from the grid.
“Reconnection shall only occur after NISO has certified the unit as fully compliant with the requirements of the Grid Code.
“NISO shall be responsible for determining non-compliance by defaulting GenCos and implementing penalties on the invoice and settlement of the affected GenCo.
“NISO shall handle the billing, payment processing, and dispute resolution for this penalty in accordance with Rules 28 and 29 of the Market Rules.
“NISO shall invoice defaulting GenCos the specified penalty amount as part of the monthly market settlement.
“The proceeds of the penalty shall be remitted to the Ancillary Service Account.”
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