Lagos State seeks bidders for gas-fired power plants to address energy shortfall

By Esther Adebayo

The Lagos State Government is inviting Expressions of Interest (EOI) from qualified companies and consortia for the establishment of gas-fired Independent Power Plants.

This initiative, led by the Ministry of Energy and Mineral Resources (MEMR) and the Office of Public Private Partnerships (OPPP), aims to address the state’s current energy deficit.

In a recent press release titled “Invitation for the Expression of Interest (EOI) for the Selection of Preferred Bidders for the Establishment of Gas-fired Independent Power Plants for the Clean Lagos Electricity Market,” Lagos State announced that it will provide four locations as hubs for new gas-fired power plants.

These facilities are expected to generate significant power output to meet the state’s growing demand, which exceeds 6 GW, while current supply from existing distribution companies (Discos) is only 2 GW.

The state intends for each hub to have a minimum generating capacity of 500 MW, and companies are required to produce at least 109 MW per hub to qualify.

The power plants will be located near existing Disco substations to streamline distribution and enhance efficiency.

Proposals are welcomed from both individual companies and consortia with the technical, financial, and legal capacity to deliver the project. Lead companies will be responsible for ensuring the project’s successful execution.

Interested applicants should submit their proposals by November 22, 2024.