The Lagos State Government has called on independent power producers and energy solution companies to submit bids for the establishment of gas-fired power plants aimed at tackling the State’s persistent electricity shortfall.
This initiative, announced by the Ministry of Energy and Mineral Resources (MEMR) in partnership with the Office of Public-Private Partnerships (OPPP) on Wednesday, seeks to generate up to 500MW of electricity across four designated hubs in the state.
With a population exceeding 20 million, Lagos remains Africa’s largest metropolitan area and Nigeria’s economic powerhouse.
However, the city’s energy demands far surpass the supply from the national grid. The government revealed that while Lagos requires over 6,000 MW of electricity, the existing DisCos supply less than 2,000 MW at peak periods.
“The state faces pressing energy challenges due to rapid urbanization and growth in economic activities. “There is an urgent need for sustainable alternatives to the supply of energy from the national grid, which is inadequate for the entire country,” the statement read in part.
Addressing the Electricity Gap
As part of its Clean Lagos Electricity Market (CLEM) initiative, the government is offering four hubs where the proposed gas-fired plants will be located.
- According to the directive from MEMR, the power plants will be sited close to existing DisCos substations to optimize distribution, with a minimum required output of 100MW from participating companies.
- Each hub is expected to generate up to 500MW to meet the growing energy needs of the state.
“This initiative is designed to close the gap between Lagos’ energy demand and supply, enabling the state to power its industrial, commercial, and residential needs more effectively,” the statement added.
Boosting Energy Security
The Lagos State Government is positioning the project as a critical step toward achieving energy security and reducing reliance on the 6 grid.
“The minimum intended generation capacity of electricity for each of the four hubs shall be 500MW, which one or more power-generating firms shall generate,” the announcement stated.
- The government also emphasized its commitment to supporting investors in the project.
“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,” it said.
- To ensure successful implementation, the project scope includes financing, engineering, construction, commissioning, and operation of the plants. Companies must also arrange a constant supply of gas and other fuels for sustained operations.
“Generation of electricity of not less than 100MW for each of the allocated sites for the Clean Lagos State Electricity Market” is a non-negotiable requirement.
Who Can Apply?
The government is welcoming bids from both individual companies and consortia with the technical, financial, and legal expertise needed to deliver the project. In cases of consortium bids, one company must be identified as the lead partner.
“The lead company will have the primary responsibility for ensuring the successful execution of the project,” the statement emphasized.
It further clarified, “Consortium members must jointly submit their application and identify their specialized expertise. This collaboration will ensure we attract the right mix of experience and innovation to deliver this critical infrastructure.”
Interested parties have been advised to visit www.ppplagos.lagosstate.gov.ng or contact info@ppplagos.ng for detailed application guidelines.
“Our goal is to establish a reliable energy supply system that meets the needs of our growing population while positioning Lagos as a leader in sustainable energy solutions,” the government concluded.
What you should know
Lagos State, the most populous in Nigeria, is home to over 20 million residents. It also accounts for the highest electricity consumption in the country, driven by its significant commercial and economic activities.
- A recent report reveals that businesses in Lagos consume approximately 6.6 billion liters of petrol annually, leading to carbon emissions estimated at 17.8 million tons of carbon equivalents.
- This high dependence on petrol is largely attributed to the inadequate power supply from the national grid.
The planned construction of power plants aims to achieve energy sufficiency in Lagos, reducing its heavy reliance on the limited and unreliable grid system.
SOURCE: NAIRAMETRICS
About The Author
