The Lagos State Government has announced plans to bridge a substantial power shortfall by developing new gas-fired power plants. The government has extended an invitation to independent power producers and energy solution providers, urging them to submit bids for the construction of these vital facilities.
This announcement comes amid recurring national grid failures, which continue to impact Nigeria’s economy and disrupt the lives of millions across the country. With the latest grid collapse occurring just yesterday, Lagos officials emphasized the need for reliable and sustainable energy solutions to address the region’s escalating power demands.
The Commissioner for Energy and Mineral Resources, Biodun Ogunleye, along with the Special Adviser on Public-Private Partnerships, Bukola Odoe, stated that Lagos requires more than 6,000 megawatts (MW) of electricity to meet its needs.
Presently, existing distribution companies, or DISCOs, can only supply around 2,000MW during peak times, which falls far short of the demand. To address this, the state government plans to establish four energy hubs near existing DISCO substations. Each hub is expected to produce at least 500MW, with opportunities for power-generating companies to bid for projects that meet the minimum requirement of generating 100MW.
According to the statement, “The Lagos State Ministry of Energy and Mineral Resources, MEMR, in collaboration with the Office of Public-Private Partnerships (OPPP) and other developing partners, is pleased to announce its intention to allocate sites for the generation of grid-connected electricity for the Clean Lagos Electricity Market, CLEM.
“The minimum intended generation capacity of electricity for each of the four hubs shall be 500MW which one or more power-generating firms shall generate. The minimum expected generating capacity for participation in any of the four hubs for any firm shall not be less than 100MW.”
“Lagos state requires that all bidders be either a single company or a consortium of companies with the necessary technical, financial, legal, and specialist expertise. In the case of a consortium, the members must jointly submit the required information and identify a lead company, which will be responsible for liaising with the project delivery team and managing the consortium’s performance.”The statement added that prospective bidders are to register electronically on the state’s public procurement agency e-procurement platform at lagosppa.gov.ng, through which required documents will be submitted. “The deadline for applications is 5pm, November 22, 2024.”
