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Lagos Government Seeks Bidders for New Gas-Fired Power Plants to Address Energy Deficit

Published by Tope Fakinlede on November 8th, 2024.

Lagos Government Seeks Bidders for New Gas-Fired Power Plants to Address Energy Deficit

The Lagos State Government has issued a call for bids from independent power producers (IPPs) and energy firms to design, build, and operate gas-fired power plants as part of a broader effort to address the state’s ongoing electricity shortfall.

The Ministry of Energy and Mineral Resources, in collaboration with the Office of Public-Private Partnerships (OPPP), announced the initiative aimed at improving the power supply to the state via the Clean Lagos Electricity Market.

A joint statement from Biodun Ogunleye, Commissioner for Energy and Mineral Resources, and Bukola Odoe, Special Adviser at the OPPP, outlined the scope of the project. Lagos, with a population of over 20 million people, is one of the largest urban centers in Africa and faces an ever-growing demand for reliable electricity. The state’s power requirement exceeds 6GW, but the national grid currently provides less than 2GW during peak hours.

To close this gap, Lagos is establishing four gas-fired power generation hubs, each requiring a minimum capacity of 100MW from participating firms. These plants will be strategically located near existing distribution substations to ensure efficient energy delivery.

“The state is creating four designated sites for the construction of gas-fired power plants to help meet its electricity needs. These plants will be connected to the grid and integrated into the Clean Lagos Electricity Market,” the statement said.

The total intended capacity for each of the four hubs is 500MW, with each participating firm required to contribute no less than 100MW to the project. Lagos is inviting qualified Independent Power Producers and power solution companies to submit their proposals for establishing these plants.

This initiative is part of the state’s broader strategy to enhance energy infrastructure and ensure a stable, sustainable power supply to meet the demands of its growing population and economy.