Elektron Energy has invested $50 million in a 30-megawatt integrated natural gas-fired power station in Lagos, Nigeria, in collaboration with Eko Electricity Distribution Plc.
Energy infrastructure firm Elektron Energy Development Strategies Limited buys, builds, and owns energy infrastructure projects in West Africa.
The embedded Independent Power Plant will deliver uninterrupted electricity through dedicated 33kV and 11kV distribution networks exclusively to identified customers within the Victoria Island franchise area of Lagos state.
This power project is especially a welcome development for the residents of Victoria Island.
It is the first of its kind because a natural gas IPP will be seamlessly integrated into Disco’s distribution network to provide gas to specific end-user consumers.
Additionally, this project would singularly address two critical areas of focus in the Energy Sector: first, natural gas utilization and second, dedicated power generation.
With the ability to eliminate up to 1000 diesel generators from its service region, the initiative will significantly reduce emissions and encourage a greener environment.
Encomiums have flooded in for Elektron Energy’s partnership with Eko Disco to address Nigeria’s power difficulties, given that private stakeholders play a significant role in closing the country’s power gap.
Speaking on behalf of His Excellency Mr. Babajide Sanwo-Olu, the Executive Governor of Lagos State in particular, at the groundbreaking ceremony on Tuesday, July 11, in Victoria Island, the Permanent Secretary of the Ministry of Energy and Mineral Resources said, “We understand that reliable steady power builds commerce, commerce builds capital, capital brings industrialization, and industrialization brings employment to our you.
“We must take all the necessary steps to ensure that Lagos, the nation’s economic center, has power, therefore we are open to anyone who is interested in bringing power to the state.”
In his remarks, the CEO of Elektron Energy, Mr. Tola Talabi, expressed his excitement for the project saying he thinks it will usher in a major turning point for the Nigerian power industry.
“It would mark the first occasion that an embedded power plant was constructed in collaboration with a distribution company. In 18 months, we hope to commission this project.”
Mr. Talabi noted that the project’s journey began eight years ago, and that this is evidence of the eradication of the regulatory and legislative roadblocks that existed years ago, labeling the project a major milestone and turning point in the Nigerian power sector.
The principal and chief financial officer of Elektron Energy, Deen Solebo, estimated that this power project would cost $50 million, take 18 months to build, and have the ability to eliminate up to 1000 diesel generators from its coverage area.
“VI Power is meant to be a 30-megawatt power plant that we will build on this site and it will serve maximum-demand customers who are commercial off-takers that have intense electricity needs fundamentally,” he stated during the event.
“Last year, we entered into a power purchase agreement and a connection agreement with Eko Disco that enable us to jointly operate the distribution network in the Victoria Island power area and also help control customer billing and revenue collection.”
Mr. Solebo added that Eko Disco owns the project’s site, indicating that the two companies have a substantial working relationship.
At the groundbreaking ceremony, Solebo also revealed that the project comprises two phases: the construction of the Independent Power Plant itself and a distribution component that involves more than five dedicated feeder networks.
