Lagos State invites independent power producers and energy companies to submit proposals for constructing gas-powered plants to meet the state’s electricity needs. The Ministry of Energy and Mineral Resources, in collaboration with the Office of Public-Private Partnerships, is working to generate up to 500MW of electricity across four designated hubs.
With a population exceeding 20 million, Lagos requires over 6,000MW of power, yet receives less than 2,000MW at peak times from the national grid. The government emphasizes the urgent need for alternative energy sources to address this deficit amid rapid urbanization and growing economic activity.
Aiming to Close the Electricity Gap
This project, under the Clean Lagos Electricity Market (CLEM) initiative, seeks to narrow the gap between energy demand and supply. The proposed power plants will be strategically placed near existing distribution substations, each hub set to produce at least 100MW. This initiative aims to enhance energy security and boost power supply for industrial, commercial, and residential use across Lagos.
Supporting Sustainable Energy Growth
The Lagos State Government views this project as crucial for achieving energy security and reducing dependence on the national grid. Officials commit to fostering an investor-friendly environment, encouraging private sector investment in this vital infrastructure. Selected companies will oversee financing, construction, commissioning, and long-term operations, including securing a reliable fuel supply.
Bidding and Requirements
The state welcomes bids from individual companies or consortia with the expertise needed for large-scale energy projects. Consortia must designate a lead company responsible for project execution, and all parties must demonstrate their specific capabilities. Detailed application guidelines are available on the public-private partnership website.
Key Context
As Nigeria’s most populous state, Lagos has the highest electricity demand due to its economic activity. Reliance on petrol-powered generators leads the state to consume around 6.6 billion liters of petrol annually, contributing significantly to carbon emissions. The planned power plants aim to reduce this dependence, enhancing energy availability, easing reliance on the national grid, and positioning Lagos as a leader in sustainable energy solutions.
