LAGOS — The Federal Government, through the Rural Electrification Agency (REA), has unveiled plans to establish Renewable Energy Service Companies (RESCOs) that will compete directly with traditional electricity distribution companies (DisCos) over the next 10 to 15 years to address chronic power outages and expand clean energy access.

Managing Director of the REA, Abba Aliyu, represented by Executive Director of Corporate Services, Gboyega Ayoade, disclosed the initiative at the Oriental News 2026 Conference in Ikeja, Lagos, outlining a strategic shift toward utility-scale renewable networks.

The initiative marks a transition away from isolated single-developer mini-grids toward interconnected solar and battery storage systems capable of serving entire local communities independently of the national grid.

Rather than approving single mini-grid projects for isolated settlements, the REA is encouraging developers to construct 20 to 50 interconnected mini-grids within targeted localities, giving consumers the option to bypass conventional thermal power completely.

Addressing underserved regions, the agency noted that many DisCos fail to supply power to remote communities due to commercial unviability or damaged feeder infrastructure, prompting agreements under the Distributed Access for Renewable Energy Scale-Up program that allow RESCOs to build their own distribution lines and take over neglected service areas.

The REA stressed that achieving 24-hour electricity nationwide requires viewing power as a paid commercial commodity rather than a government subsidy, noting that consumers must adopt cost-reflective tariffs while the Standards Organisation of Nigeria enforces strict screening on imported solar panels and lithium batteries to guarantee safety.