The Lagos State Government has called on independent power producers and energy solutions companies to submit bids for the establishment of gas-fired power plants aimed at addressing the state’s persistent electricity deficit.

This initiative, announced on Wednesday by the Ministry of Energy and Mineral Resources (MEMR) in partnership with the Office of Public-Private Partnerships (OPPP), aims to produce up to 500 MW of electricity through four designated poles in the state.

With a population of over 20 million, Lagos remains Africa’s largest metropolitan area and Nigeria’s economic powerhouse.

However, the city’s energy demand far exceeds the supply from the national grid. The government revealed that while Lagos requires more than 6,000 MW of electricity, the existing DisCos provide less than 2,000 MW at peak periods.

“The state is facing pressing energy challenges due to rapid urbanization and growth in economic activities. “There is an urgent need for sustainable alternatives to energy supply from the national grid, which is insufficient for the entire country. » » the statement read in part.

Bridging the electricity gap

As part of its Clean Lagos Electricity Market (CLEM) initiative, the government is proposing four hubs where the proposed gas-fired power plants will be located.

• According to the MEMR directive, the power plants will be located near existing DisCos substations to optimize distribution, with a minimum power requirement of 100 MW from participating companies.
• Each hub is expected to generate up to 500 MW to meet the growing energy needs of the state.

“This initiative aims to bridge the energy demand and supply gap in Lagos, enabling the state to more efficiently meet its industrial, commercial and residential needs,”», Adds the press release.

Strengthening energy security

The Lagos State Government is positioning the project as a crucial step towards achieving energy security and reducing dependence on the 6 grid.

“The minimum electricity production capacity planned for each of the four poles will be 500 MW, which one or more electricity production companies must produce,” the ad says.

• The government also underlined its commitment to supporting investors in the project.

“Lagos creates an enabling environment for private sector investment in the energy sector, and we are confident that this project will attract leading companies capable of providing world-class solutions.» he said.

• To ensure successful implementation, the project scope includes financing, engineering, construction, commissioning and operation of the plants. Businesses must also ensure a constant supply of gas and other fuels to ensure the sustainability of their operations.

“Electricity generation of at least 100 MW for each of the sites allocated to the Clean Lagos State Electricity Market” is a non-negotiable requirement.

Who can apply?

The government welcomes offers from individual companies and consortia with the technical, financial and legal expertise necessary to carry out the project. In the case of consortium tenders, a company must be identified as lead partner.

“The lead company will have primary responsibility for ensuring the proper execution of the project” underlines the press release.

He further clarified, “Consortium members must jointly submit their application and identify their specialist expertise. This collaboration will ensure we attract the right combination of experience and innovation to deliver this critical infrastructure.

Interested parties were invited to visit www.ppplagos.lagosstate.gov.ng or contact [email protected] 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,” concluded the government.

What you need to know

Lagos State, the most populous in Nigeria, has more than 20 million inhabitants. It also has the highest electricity consumption in the country, due to its significant commercial and economic activities.

• A recent report revealed that businesses in Lagos consume approximately 6.6 billion liters of gasoline per year, resulting in carbon emissions estimated at 17.8 million tonnes of carbon equivalent.
• This heavy dependence on oil is largely attributed to insufficient electricity supply from the national grid.

The planned construction of power plants aims to achieve energy self-sufficiency in Lagos, reducing its heavy reliance on a limited and unreliable grid system.

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