The Lagos State Government has 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.
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.
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