Seplat Energy’s Chief Executive Officer, Engr. Effiong Okon has said that Lagos State’s widespread dependence on petrol and diesel generators presents a significant market opportunity for investment in alternative electricity solutions.
Delivering a goodwill message at the Lagos Energy Summit, at the Lagos Energy Summit, Okon said the scale of generator use across Lagos reflected an existing market of households and businesses willing to pay for reliable electricity.
Okon who was represented by Engr. Alonge Longe argued that rather than viewing generator dependence solely as a failure of the conventional electricity supply system, industry players should recognise the commercial opportunities it presents.
According to him, every household or business purchasing a generator is making an investment decision based on its need for more reliable power.
He said Lagos residents and businesses had effectively developed a large decentralised electricity system through individual investments in generators, despite the absence of a coordinated framework for meeting their energy needs.
However, he noted that reliance on petrol and diesel generators comes with significant costs, as households and businesses spend considerable amounts on fuel to maintain electricity supply.
These expenses increase operating costs, put pressure on household finances and affect business productivity.
The Seplat CEO said the opportunity lies in converting this existing demand and expenditure into more organised, reliable and sustainable electricity solutions.
He identified distributed energy systems as an important part of the transition, particularly solutions designed to serve households, businesses, commercial centres and industrial clusters.
He also highlighted the role of natural gas in supporting alternative power generation and industrial processes, noting that the opportunity extends beyond making gas available to developing the infrastructure, financing structures and commercial arrangements required to deliver projects.
He said energy solutions should be designed around the needs of different consumers, taking into consideration affordability, reliability and the specific requirements of their operations.
The Seplat chief executive stressed the importance of identifying areas with concentrated electricity demand, demonstrating the commercial viability of proposed projects and mobilising the capital and technical expertise needed to execute them.
He said Lagos already had the demand for alternative electricity, adding that the task before energy companies was to organise that demand into viable markets capable of attracting long-term investment.
He called for collaboration among government, regulators, operators, investors and technology providers to develop solutions that would improve electricity supply and support industrial growth.
