Lagos State Government Signs New Power Purchase Agreements to Enhance Supply
The Lagos State Government has formalized Power Purchase Agreements (PPAs) with three independent power producers: Mainland Power Limited, Akute Independent Power Plant, and Fenchurch Power Limited. This initiative aims to significantly boost the power supply in the region.
The agreements were finalized on Sunday at Lagos House, Marina, in a ceremony attended by Governor Babajide Sanwo-Olu. The state’s Commissioner for Energy and Mineral Resources, Mr. Abiodun Ogunleye, represented the government in signing the contracts.
Mainland Power Limited and Akute Independent Power Plant are established players in the Lagos energy landscape, while Fenchurch Power Limited emerges as a new addition to the growing network of independent power plants (IPPs) in the state.
During the signing ceremony, Governor Sanwo-Olu urged the partners to adhere to the terms of the agreements and maintain a high level of professionalism in their operations. He emphasized the significance of the arrangements for the citizens: “This agreement is about the people and how quickly we can solve the problem. We must keep our promises on both sides. When people benefit, their lives will be easier. This marks the beginning of the reforms we are pursuing in the energy sector,” he remarked.
Mr. Ogunleye highlighted that the agreements represent a strategic advancement toward increasing power generation capacity and activating underutilized assets. He reported that the three companies collectively possess a current power generation capacity of approximately 60 megawatts (MW), with the potential to expand to between 200 MW and 400 MW within the next two to three years.
Importantly, this expansion is designed to occur without additional strain on public finances, as the companies are expected to operate efficiently within the competitive market, thereby ensuring sustainable electricity supply.
Ogunleye provided further details on the capacities of the involved companies. Mainland Power Limited operates the Ikeja GRA power plant, boasting an installed capacity of 8.8 MW and a contracted capacity of 5.8 MW. This facility powers essential public infrastructure, including the Lagos State University Teaching Hospital (LASUTH) and various substations in Ikeja and Oshodi.
The Akute Independent Power Station, currently under the management of Fenchurch Power Limited, has a contracted capacity of 26 MW. After being dormant for about five years, the facility is undergoing renovations as part of a long-term operational strategy, aiming to support the surrounding community, including the Adyan Water Board.
In the Island Corridor, Island Power Limited/Viasun Engineering operates the Peninsula Integrated Power Project, featuring a total installed capacity of 21 MW—6 MW at Lekki and 15 MW at Marina. This project is critical for powering infrastructures such as the Lagos State Government House, the Deputy Governor’s Residence, Lagos Island General Hospital, and Lagos Island Maternity Hospital.
Participants at the event praised the Sanwo-Olu administration for its commitment to infrastructure development, which is enhancing investor confidence in Lagos’s energy sector and positioning the state as a leading hub for investments in power.
