How Decentralised Power Would Aid Economic Growth
Lagos State Governor Babajide Sanwo-Olu has taken a significant step toward enhancing power supply in the state by formalising power purchase agreements with three independent power producers (IPPs): Mainland Power Limited, Fenchurch Nigeria Limited, and Viathan Engineering Limited. The agreements were signed at Lagos House, Marina, in the presence of the governor, and were facilitated by the Office of Public-Private Partnerships (PPP) in collaboration with the Ministry of Energy and Mineral Resources.
Bukola Odoe, Special Adviser to the Governor on PPP, hailed the development as a game-changer for businesses in Lagos, particularly regarding persistent power challenges. She emphasised that the deal underscores the state's deliberate strategy to leverage PPP for more efficient power delivery.
A key component of the agreements is the concession of the Akute Independent Power Plant to Fenchurch Power Limited. The plant, which has remained dormant for five years, will undergo full rehabilitation and expansion under a 25-year concession, renewable subject to performance. The scope includes upgrading the existing 12.15MW capacity and adding an additional 14MW through the deployment of seven 2MW gas engines, bringing total contracted capacity to approximately 26MW.
Upon completion, Odoe stated that the facility would meet the Lagos State Water Corporation's peak demand of 18.7MW, power the upgraded Adiyan Water Works, and serve surrounding communities. This decentralised approach to power generation is expected to significantly boost economic growth by providing reliable electricity to businesses and critical infrastructure.
