The Lagos State Government has called on independent power producers and energy solution companies to submit bids for the construction of gas-fired power plants to help bridge the state’s ongoing electricity shortfall. The initiative, aimed at addressing the power deficit, was announced by the Ministry of Energy and Mineral Resources (MEMR) in partnership with the Office of Public-Private Partnerships (OPPP) on Wednesday.
This project seeks to generate up to 500MW of electricity across four designated hubs in Lagos, a city with a population exceeding 20 million and Nigeria’s economic powerhouse. Lagos is also the largest metropolitan area in Africa, and with its rapidly growing energy demands, officials have emphasized the urgent need for additional power generation capacity.
A statement jointly issued by the Commissioner for Energy and Mineral Resources, Biodun Ogunleye, and the Special Adviser, Office of Public-Private Partnerships, Bukola Odoe, explained that Lagos’s electricity requirement exceeds 6GW, but the current supply from the national grid is under 2GW, even at peak times.
To address this deficit, the state is establishing four gas-fired power hubs, each requiring a minimum of 100MW capacity from participating companies. The hubs will be located near existing distribution companies’ (DisCos) substations to facilitate integration into the grid.
“The state is hereby making available four hubs for establishing gas-fired power plants that will generate the shortfall of the energy demand. These generating plants will be sited near the already existing discos sub-stations in the state,” the statement said.
The initiative is part of efforts to boost Lagos’s power supply through the Clean Lagos Electricity Market (CLEM), which is designed to ensure a sustainable energy future for the state. The Ministry of Energy and Mineral Resources, in partnership with the OPPP and other development partners, will allocate sites for grid-connected electricity generation.
“The ministry, in collaboration with the 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,” the statement further explained.
The minimum intended generation capacity for each of the four hubs is 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,”* the statement added.
The Lagos State Ministry of Energy and Mineral Resources and the Office of Public-Private Partnerships are inviting qualified gas-fired Independent Power Producers and Power Solution Companies to express interest in providing Independent Power Plants with a minimum installed capacity of 100MW for each of the identified hubs in the Clean Lagos Electricity Market.
The government’s push to address the power shortfall comes at a time when Nigeria is facing chronic power supply challenges. On Thursday, the national grid collapsed for the second time in 72 hours, leading to a nationwide blackout.
Lagos has stated that its energy requirement is over 6GW (6,000MW), while the supply from existing distribution companies (DisCos) is under 2GW (2,000MW) at peak periods. The state aims to site four hubs near existing DisCos’ sub-stations in Lagos to help address the deficit.
*“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 statement said.
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The project scope includes financing, engineering, procurement, construction, commissioning, and testing to meet grid-specified performance criteria. The preferred bidders will also be required to operate and maintain the plants, ensure a constant fuel supply, and generate no less than 100MW for the allocated Clean Lagos Electricity Market.
The Lagos State Government has outlined specific requirements for bidders, including that all bidders must be 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 documents and identify a lead company responsible for liaising with the project delivery team and managing the consortium’s performance.
Prospective bidders are required to register electronically on the state’s public procurement agency e-procurement platform at lagosppa.gov.ng, where the necessary documents will be submitted.
Lagos State has set a deadline for the submission of bids: 5pm, November 22, 2024.
