- Lagos State has called for bids to build gas-fired power plants to address a 4,000MW energy shortfall caused by frequent national grid failures.
- The state plans to establish four energy hubs, each with a minimum 500MW capacity, as part of its Clean Lagos Electricity Market (CLEM).
To address a significant energy shortfall, the Lagos State Government has called independent power producers and energy solution companies to submit bids for constructing gas-fired power plants. The move comes in response to frequent collapses of the national electricity grid, which have adversely impacted the country’s socio-economic landscape. The most recent grid failure occurred yesterday.
In a statement signed by Biodun Ogunleye, the Commissioner for Energy and Mineral Resources, and Bukola Odoe, the Special Adviser on Public-Private Partnerships (PPP), the state emphasized the urgent need for reliable and sustainable alternatives to the national grid, citing the inadequacy of the country’s current energy supply.
Lagos State’s energy demand exceeds 6,000 megawatts (MW), while the current supply from existing Distribution Companies (DISCOs) barely meets 2,000MW during peak periods. The state plans to establish four energy hubs near existing DISCO substations to bridge this gap.
The statement revealed that each of the four proposed hubs will have a minimum generation capacity of 500MW, with each participating firm required to generate no less than 100MW. These hubs will be part of the state’s Clean Lagos Electricity Market (CLEM), a strategic initiative aimed at securing a stable and sustainable energy supply for the region.
According to the statement, the Lagos State Ministry of Energy and Mineral Resources (MEMR), in partnership with the Office of Public-Private Partnerships (OPPP) and other development partners, will oversee the selection of power producers to manage the construction and operation of the plants. The project’s scope will include financing, engineering, procurement, construction, commissioning, and testing to meet grid-specific performance criteria.
The preferred bidders will also ensure a steady fuel supply and maintain the plants to ensure continuous electricity generation. The state has specified that all bidders must be either a single company or a consortium with the requisite technical, financial, and legal expertise. In the case of a consortium, the lead company will be responsible for liaising with the project delivery team and managing the consortium’s overall performance.
Interested parties must register on the state’s public procurement agency e-procurement platform at [lagosppa.gov.ng](http://lagosppa.gov.ng), where they can submit their documents. The deadline for application submissions is 5:00 p.m. on November 22, 2024.
This initiative is part of Lagos State’s ongoing efforts to improve its energy infrastructure and reduce reliance on the unreliable national grid.