- Lagos State planned to reduce its dependency on the national grid through the establishment of new power plants
- The State requested proposals from energy companies for gas-fired power plants to address power demand
- Minimum required output from each participating energy company set at 100MW, with each of the four hubs aiming for 500MW
In a bold move to address Lagos' growing power needs and reduce the dependence on the frail national grid, the state government has called for proposals from independent power producers and energy companies to establish gas-fired power plants capable of generating up to 500MW across four strategic hubs.
The Ministry of Energy and Mineral Resources (MEMR), in collaboration with the Office of Public-Private Partnerships (OPPP), launched an initiative on Wednesday, November 6 aimed at generating up to 500MW of power across four hubs in the state.
Lagos seeks sustainable alternatives to national grid
The government revealed in a statement that Lagos needs over 6,000 MW of electricity, yet the current DisCos provide less than 2,000 MW even during peak periods.
“The state faces pressing energy challenges due to rapid urbanisation 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.
The government, through its Clean Lagos Electricity Market (CLEM) initiative, is providing four designated hubs for the proposed gas-fired plants.
MEMR instructed that the power plants be situated near DisCos substations to optimise electricity distribution, with a minimum output of 100MW expected from each participating company.
The goal for each hub is to generate as much as 500MW to address the state's expanding energy requirements.
Lagos targets 500mw capacity to boost energy
“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.
The Lagos State Government said the project is a key strategy for improving energy security and cutting down reliance on the national 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.
“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.
“Generation of electricity of not less than 100MW for each of the allocated sites for the Clean Lagos State Electricity Market,” it said.
Interested applicants invited to submit bids for power generation project
To guarantee successful implementation, the project involves financing, engineering, construction, commissioning, and operation, while companies must ensure an uninterrupted supply of gas and other essential fuels.
The government is inviting bids from both individual companies and consortia with the required technical, financial, and legal expertise to execute the project. For consortium bids, one company must be designated as the lead partner.
“The lead company will have the primary responsibility for ensuring the successful execution of the project,” the statement read.
It further said, “Consortium members must jointly submit their application and identify their specialised expertise. This collaboration will ensure we attract the right mix of experience and innovation to deliver this critical infrastructure.”
“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 added.
Interested applicants should visit www.ppplagos.lagosstate.gov.ng or email info@ppplagos.ng for complete application guidelines.
Lagos State bans sachet water, single-use plastics, State commencement date
Meanwhile, TheRadar earlier reported that Lagos State announced plans to ban single-use plastics starting January 2025, including polyethylene terephthalate (PET) bottles and sachet water.
Commissioner Tokunbo Wahab highlighted the significance of sustainable plastic waste management for the environment and economy.