The Lagos State government on Sunday signed a Power Purchase Agreement (PPA) with three electricity-generating companies to boost energy supply in the state.
The signing agreement was witnessed by Lagos State governor, Mr Babajide Sanwo-Olu, at Lagos House, Marina, with the Commissioner for Energy and Mineral Resources, Abiodun Ogunleye, signing on behalf of the state government.
While Mainland Power Limited and Akute Independent Power Plant had been operating in the state, Fenchurch was a new partner. Three of the four Independent Power Plants (IPPs) are currently operating in the state.
In his address after the signing ceremony, Governor Sanwo-Olu urged all partners to uphold the sanctity of the agreements, exhibit commitment, and uphold professionalism to make the projects viable and improve the lives of residents.
“This agreement is about the people and how easily we can solve problems. Let’s keep promises from both sides. When people benefit, life becomes easier.
This is the beginning of reforms we are seeing in the energy sector,” Sanwo-Olu said.
The Commissioner for Energy and Mineral Resources, Abiodun Ogunleye, described the agreement as a move to increase power generation and revitalise dormant assets to provide a renewed power supply to Lagosians.
He added that the three companies already have a combined generating capacity of 60MW, noting that, with the agreement, they can scale up to 200-400MW in two or three years without draining the treasury, while competing in the marketplace to provide sustainable energy to our citizens.
Ogunleye further said the Mainland Power Limited, which handles the Ikeja GRA plant, has an installed capacity of up to 8.8MW and a contracted capacity of 5.8MW and serves a wide coverage area stretching from Ikeja to Oshodi providing power to key public infrastructure such as Lagos State University Teaching Hospital, LASUTH, Lagos State Urban Renewal Agency, LASURA, and other strategic substations within the state’s power network.
The Commissioner added that the Akute Independent Power Plant, now to be handled by Fenchurch Power Limited, has a contracted capacity of 26MW and is being repositioned as a major energy hub for Lagos State.
Though moribund for the past five years, Ogunleye noted that the plant is now being resuscitated through a comprehensive rehabilitation, upgrade, and long-term operational agreement, and will provide power to surrounding communities, including Adiyan Water Works.
For the Island corridor, the Commissioner said the Viathan Engineering which is in charge of the Island Power Limited / Peninsula Integrated Power Project has a combined installed capacity of 21MW, comprising 6MW at Lekki and 15MW at Marina, and will provide power to public infrastructure, including the Lagos State Government House, the deputy governor’s residence, and key health facilities such as Lagos Island General Hospital, Odan, and Lagos Island Maternity Hospital.
The partners commended the Babajide Sanwo-Olu administration for setting the pace for Infrastructural development in the country, thereby sending clear signals to investors that Lagos is a viable environment to improve the energy ecosystem.
🚨BREAKING: Watch The Video Clip Here ➤
