… targets scale-up to 200–400MW within 3 years through market-driven investments
Oredola Adeola
The Lagos State Government has signed three power purchase agreements with Fenchurch Power, Mainland Power and Viathan for about 60MW of generation, with plans to scale capacity to 200–400MW within two to three years through market-driven investments under the Lagos State Electricity Law 2024, aligned with the Nigerian Electricity Act.
Babajide Sanwo-Olu disclosed the development on Sunday, noting that the agreements were executed on behalf of the state by Abiodun Ogunleye alongside representatives of the three firms at Lagos House, Marina.
According to him, signing of three power purchase agreements designed to build on existing capacity and address what has not been working.
He said, Fenchurch Power will support our major water facilities in Adiyan and Iju, while Mainland Power will continue serving Ikeja, Oshodi, and Anthony, with room for expansion.
“Viathan will maintain stable power supply to key facilities on the Island as we strengthen its integration with the distribution network.
The Governor explained that the State Government has updated those agreements to reflect current market realities, insisting that the government will no longer pay for power that is not delivered.
Sanwo-Olu noted that payments are now tied to actual, metered supply, helping the government to reduce waste and manage costs more effectively.
He therefore emphasised that the agreement means more reliable power for public infrastructure, better use of state resources, and a clear path to scale capacity over the next few years.
The Commissioner for Energy and Mineral Resources in his remark stated that development is an attempt to expand generation and revive dormant assets to support a sustainable energy supply.
He noted that the power companies at the moment operates a combined generating capacity of about 60MW to plan to scale up to between 200MW and 400MW within two to three years through market-based investments rather than public spending.
Providing a further breakdown of the network Ogunleye revealed that Mainland Power, with an installed capacity of 8.8MW, located in the Ikeja GRA axis, has a contracted capacity of 5.8MW, supplying power to strategic public facilities, including the Lagos State University Teaching Hospital and other substations within the state’s network.
He also noted that the Akute Independent Power Plant, now operated by Fenchurch Power, has a contracted capacity of 26MW and is being repositioned as a major energy hub.
The commissioner said the plant, which had been dormant for about five years, is undergoing rehabilitation and upgrades under a long-term operational agreement and is expected to serve surrounding communities, including Adiyan Water Works.
Viathan Engineering, according to him, is expected to service the Island/Lekki corridor overseeing the Peninsula Integrated Power Project with a combined installed capacity of 21MW — 6MW in Lekki and 15MW in Marina.
Both facilities are expected to supply electricity to major government and health facilities, including Lagos Government House, Lagos Island General Hospital and Lagos Island Maternity Hospital.
