- Lagos State Government invites bids for four gas-fired power plants, totalling 4,000MW, as part of the “Clean Lagos Electricity Market” (CLEM) initiative.
- The project aims to address Lagos’s energy deficit, with demand exceeding 6,000MW while supply remains below 2,000MW during peak hours.
- Bidders must submit proposals via Lagos’ e-procurement platform by 5 p.m. on November 22, 2024, with a minimum generation requirement of 100MW per hub.
The Lagos State Government is inviting investors and energy firms to establish four gas-fired power plants with a combined capacity of 4,000 MW. This announcement follows two collapses of Nigeria’s national grid in one week, marking the 11th outage in less than a year.
The Ministry of Energy and Mineral Resources, in partnership with the Office of Public-Private Partnerships (PPP), issued the bid call. The plants will form part of the state’s “Clean Lagos Electricity Market” (CLEM) initiative, aimed at providing an alternative to the unreliable national grid.
Biodun Ogunleye, Commissioner for Energy and Mineral Resources, and Bukola Odoe, Special Adviser on PPP, emphasised the need for sustainable energy solutions. The grid’s repeated failures underscore the urgency of the project. Lagos faces an energy crisis, with demand exceeding 6,000MW, while distribution companies (DisCos) provide under 2,000MW during peak hours.
Lagos plans to create four power generation hubs under the CLEM project, each with a minimum capacity of 500MW. One or more firms will generate this capacity at each hub. The government requires each bidder to generate at least 100MW per hub.
The project will involve financing, engineering, procurement, construction, commissioning, and testing to meet grid performance standards. Bidders must also manage plant operations, maintenance, and fuel supply.
Lagos invites bids from individual companies and consortia. All bidders must demonstrate the necessary technical, financial, and legal expertise. Consortia must designate a lead company to coordinate with the project delivery team, ensuring accountability and proper management.
Interested parties must submit their bids electronically via the state’s e-procurement platform at lagosppa.gov.ng. They must submit all required documents by the deadline of 5 p.m. on November 22, 2024.
The Lagos State Government’s push for gas-fired plants comes at a crucial time. The national grid has proven unreliable, with frequent breakdowns disrupting the power supply nationwide. As the country’s economic hub, Lagos faces a particularly heavy impact from these outages, which affect businesses, households, and daily activities.
With power demand far outstripping supply, the state aims to relieve pressure on the national grid. Lagos hopes to build a more reliable energy infrastructure by attracting private investment and expertise. The CLEM initiative represents a vital step toward energy security for the state and ensuring a steady power supply for its growing population.
Lagos remains committed to supporting successful bidders throughout the project. The state aims to ensure all power plants meet the highest performance and sustainability standards. The initiative aligns with Nigeria’s broader efforts to diversify energy sources and reduce dependence on the faltering national grid.
The development of these gas-fired power plants marks a significant move to improve Nigeria’s energy sector. With the deadline fast approaching, Lagos is eager to move ahead with the project and tackle its energy challenges directly.
The CLEM initiative could also serve as a model for other Nigerian states, demonstrating the power of public-private partnerships to address the country’s ongoing power supply issues.