In an ambitious stride towards energy independence, the Lagos State Government has called on independent power producers and energy solution companies to submit proposals for developing gas-fired power plants across the state.
This initiative, unveiled by the Lagos State Ministry of Energy and Mineral Resources (MEMR) in partnership with the Office of Public-Private Partnerships (OPPP), seeks to generate up to 500 megawatts (MW) of electricity across four designated power hubs, bridging the gap between the city’s immense electricity demand and the shortfall supplied by the national grid.
This call for bids follows the enactment of Nigeria’s Electricity Act 2023, a groundbreaking legislation empowering states to generate and distribute electricity autonomously. Since its passage, Lagos and Ekiti are the only states to seize the opportunity, launching projects that lay the groundwork for substantial shifts in the Nigerian energy sector. The new policy is expected to relieve pressure on the struggling National Grid, which has experienced a record ten collapses this year.
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Aiming for 500MW in Power Capacity
The Lagos initiative will be rolled out across four energy hubs strategically located near existing substations to maximize electricity distribution efficiency. Each hub will contribute a minimum output of 100 MW, ultimately adding 500 MW of additional power to the city’s infrastructure. This capacity is expected to significantly bridge the supply gap while enhancing energy reliability for Lagos’ industrial, commercial, and residential sectors.
According to the MEMR directive, the project’s scope includes financing, engineering, construction, commissioning, and the long-term operation of the power plants. A critical requirement of the project mandates that selected firms must establish a steady fuel supply to ensure seamless plant operations, thereby guaranteeing consistent electricity flow to meet the rising demands of Lagos’s bustling economy.
Investment Opportunities and Government Call for Private Sector Participation
The Lagos State Government has positioned the project to attract private sector participation, highlighting its commitment to creating an enabling environment for investors.
“Lagos is creating an enabling environment for private sector investment in the energy sector, and we are confident that this project will attract top-tier companies capable of delivering world-class solutions,” the government noted, emphasizing its goal to become a model of sustainable energy solutions for other states.
The government welcomes applications from both individual companies and consortia, provided that they demonstrate the technical, financial, and legal expertise necessary to successfully execute the project. Consortium bids must designate a lead company responsible for the project’s implementation, ensuring seamless coordination among partners. Each member of the consortium must clearly outline their specific expertise to ensure that the project benefits from a robust combination of skills.
Interested companies are encouraged to visit the state’s public-private partnership portal at ppplagos.lagosstate.gov.ng or reach out via [email protected] for detailed guidelines on how to apply.
With over 20 million residents, Lagos is Nigeria’s economic engine and Africa’s largest metropolitan hub. However, the state faces a significant energy deficit that stifles its industries, commerce, and the daily lives of its residents. Although Lagos’ electricity demand exceeds 6,000 MW, it receives less than 2,000 MW from the national grid at peak times, forcing businesses and households to rely heavily on petrol and diesel generators.
The CLEM (Clean Lagos Electricity Market) initiative, under which the proposed power plants fall, marks a significant response to these issues. The Lagos State Government aims to support the city’s growing energy needs while advancing cleaner, more sustainable energy sources through local supply.
The Electricity Act and Its Potential for Transformative Change
The Electricity Act, represents a pivotal development in Nigeria’s energy policy, giving individual states the legal authority to produce and distribute electricity outside the national framework. This shift has created an unprecedented opportunity for states to explore independent energy solutions to meet their unique needs.
Analysts expect that as more states take advantage of this legislative empowerment, Nigeria’s electricity supply will diversify and strengthen, potentially reducing the frequent grid collapses that have plagued the country’s power infrastructure.