Lagos State Calls for Bids to Build Gas-Fired Power Plants to Boost Electricity Supply

The Lagos State Government has invited independent power producers and energy solution firms to submit proposals for building gas-fired power plants to help address the state’s electricity needs. This initiative, spearheaded by the Ministry of Energy and Mineral Resources in partnership with the Office of Public-Private Partnerships (OPPP), aims to increase power supply through the Clean Lagos Electricity Market.

The joint announcement was made by the Commissioner for Energy and Mineral Resources, Biodun Ogunleye, and the Special Adviser for Public-Private Partnerships, Bukola Odoe. They emphasized that Lagos, Africa’s largest metropolitan area with a population exceeding 20 million, faces a substantial electricity shortfall. The state’s demand surpasses 6GW, while current supply from the national grid rarely exceeds 2GW during peak times.

To close this gap, the government plans to establish four gas-fired power hubs, each of which will require a minimum capacity of 100MW from participating companies. “The state is making available four hubs for establishing gas-fired power plants that will generate the energy shortfall,” the officials stated. The plants will be strategically located near existing electricity distribution company (disco) substations in Lagos.

According to Ogunleye and Odoe, the project is intended to generate a total minimum capacity of 500MW across the four hubs. “The minimum intended generation capacity of electricity for each of the four hubs shall be 500MW, which one or more power-generating firms will generate. The minimum expected generating capacity for any firm participating in any of the four hubs is not less than 100MW,” they explained.

The Lagos government, in collaboration with the OPPP and other development partners, emphasized the importance of grid-connected electricity for the Clean Lagos Electricity Market. They expressed hope that the initiative will attract qualified gas-fired independent power producers and power solution companies willing to invest in boosting Lagos’s energy infrastructure.

The invitation underscores Lagos State’s commitment to addressing its longstanding electricity challenges, enhancing economic growth, and providing reliable energy for millions of residents. “The Lagos State Ministry of Energy and Mineral Resources and the Office of Public-Private Partnerships hereby invite qualified gas-fired Independent Power Producers/Power Solution Companies to express interest in the provision of Independent Power Plant/Plants with an installed capacity of not less than 100MW for each of the four identified hubs in the Clean Lagos Electricity Market,” the statement concluded.

This initiative is seen as a critical step toward transforming Lagos into a more energy-sufficient and economically vibrant city, meeting the growing energy demands of its residents and businesses.