NIGERIA – The Lagos State Government has invited proposals from investors, independent power producers, and energy companies to develop up to 4GW of gas-fired power plants, in an effort to address persistent power outages.
This initiative, reported by Reuters, seeks to bridge Lagos’s energy gap as businesses and households struggle with frequent blackouts.
Lagos, which requires over 6GW of electricity, currently receives only about 2GW from the national grid.
To counter this shortfall, the state government has earmarked four hubs for the construction of gas-fired power stations under its Clean Lagos Electricity Market plan.
Each hub is expected to generate a minimum of 500MW, with one or more companies managing generation based on power purchase agreements with the state.
This call for bids follows a landmark decision by President Bola last year, allowing state governments to generate and distribute their power independently, a departure from previous federal control.
With approximately 40% of Nigerians lacking access to electricity, this shift aims to enhance investment in the sector.
Historically, low electricity tariffs have limited investment appeal for independent power producers, but the gradual phasing out of government subsidies is changing the landscape.
Although Nigeria has the infrastructure to generate up to 13GW, its outdated grid can distribute only about a third of that capacity, leading many residents to rely on costly fuel generators.
In response, Lagos announced plans in May to create five additional power hubs, complementing six solar proof-of-concept sites that provide cleaner energy options for residents.
Commissioner for Energy and Mineral Resources, Biodun Ogunleye, highlighted that renewable energy remains a critical focus of Lagos’s clean energy strategy.
The government’s Clean Lagos Electricity Market plan also includes a goal to develop 1GW of solar power. Over ten locations are being considered for this solar project, including Egbin, Ikorodu, Badagry, Agbara, and Ogudu.
Ogunleye emphasized, “Renewable energy is the cornerstone of Lagos’s clean electricity ambitions, aiming to foster reliable and sustainable power solutions for the city.”
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