In-addition to 140MW projects in pipeline, Elektron gets regulatory nod for 40MW project in VI

The Lagos State Electricity Regulatory Commission (LASERC) has granted Elektron Energy Development Strategies Limited a generation licence, clearing the way for its 40MW Victoria Island Power (VIPL) project to move towards commercial operations.

The gas-fired plant is expected to begin commercial operations in December 2026, with plans to scale its capacity to 70MW.

This approval follows other embedded generation projects in Sangrosse, Ogba, Ibeju-Lekki and Tokarawa being developed by the company with proposed capacities of 40MW, 40MW, 40MW and 20MW respectively.

The project is being developed in partnership with Eko Power, formerly Eko Electricity Distribution Company (EKEDC), to provide dedicated electricity to businesses in Victoria Island.

Elektron said the plant will serve high-demand customers including banks, hotels, telecommunications companies and multinational businesses in the commercial district.

Power from the project will be delivered through a 12.6-kilometre underground feeder network.

The licence is the latest regulatory step for the project as Lagos continues to open up its electricity market to private generation and supply.

Elektron’s Chief Executive Officer, Tola Talabi, said the approval would support the company’s expansion of power infrastructure in Lagos.

“This licence represents an important step forward for Elektron and for the businesses and communities we serve,” Talabi said.

He said the approval demonstrated confidence in the company’s technical, operational and regulatory capacity.

The company said its Wärtsilä generation engines have been installed, while work on other parts of the project is progressing.

Elektron currently operates embedded power projects in Lagos, including the 10.6MW Alausa Independent Power Project, which supplies Lagos State Government facilities, and a 7MW project serving Rack Centre in Ikeja.

The Victoria Island project is backed by ARM-Harith Infrastructure Fund, InfraCredit, the Nigeria Sovereign Investment Authority and the Bank of Industry, while Wärtsilä is providing engineering, procurement and construction services as well as long-term operations and maintenance support.