Lagos signs power purchase deal with firms to boost electricity supply
The Lagos State Government on Sunday signed a Power Purchase Agreement (PPA) with three electricity generating companies as part of efforts to improve power supply across the state. The agreement
The Lagos State Government on Sunday signed a Power Purchase Agreement (PPA) with three electricity generating companies as part of efforts to improve power supply across the state.
The agreement was signed at the Lagos House, Marina, in the presence of Governor Babajide Sanwo-Olu, with the Commissioner for Energy and Mineral Resources, Abiodun Ogunleye, signing on behalf of the state.
The firms involved include Mainland Power Limited, Akute Independent Power Plant and Fenchurch Power Limited, with the latter joining as a new partner.
Speaking after the signing, Sanwo-Olu urged all parties to uphold the terms of the agreement, stressing the need for commitment and professionalism to ensure the success of the projects.
“This agreement is about the people and how easily we can solve problems. Let’s keep promises from both sides. When people benefit, it makes life easier. This is the beginning of reforms we are seeing in the energy sector,” the governor said.
Ogunleye described the deal as a strategic move to boost power generation and revitalise dormant assets, adding that it would provide reliable electricity to residents.
According to him, the three companies currently have a combined generation capacity of about 60 megawatts (MW), which is projected to scale up to between 200MW and 400MW within the next two to three years.
He noted that the expansion would be achieved through competitive market operations without placing additional financial burden on the state.
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The commissioner explained that Mainland Power Limited, which operates the Ikeja GRA plant, has an installed capacity of 8.8MW and a contracted capacity of 5.8MW, supplying electricity to areas from Ikeja to Oshodi, including critical infrastructure such as the Lagos State University Teaching Hospital (LASUTH) and the Lagos State Urban Renewal Agency (LASURA).
He added that the Akute Independent Power Plant, now to be managed by Fenchurch Power Limited, has a contracted capacity of 26MW and is being repositioned as a major energy hub.
The plant, which had been dormant for about five years, is undergoing rehabilitation and upgrade and is expected to supply power to surrounding communities, including the Adiyan Water Works.
For the Island axis, Ogunleye said the Island Power Limited/Peninsula Integrated Power Project, operated by Viathan Engineering, has a combined installed capacity of 21MW, comprising 6MW in Lekki and 15MW in Marina.
He said the facility would provide electricity to key public infrastructure, including the Lagos State Government House, the Deputy Governor’s residence, Lagos Island General Hospital and Lagos Island Maternity Hospital.
The partner companies commended the Sanwo-Olu administration for its infrastructure drive, noting that the initiative sends positive signals to investors about Lagos as a viable destination for energy sector investment.
