Lagos formalizes three power purchase agreements to expand embedded electricity generation
via Punch Nigeria4 min read
The Lagos State Government has formalized three Power Purchase Agreements with Independent Power Producers: Fenchurch Power, Mainland Power, and Viathan Engineering Limited. These agreements aim to expand embedded electricity generation and improve power supply to critical state infrastructure. The Commissioner for Energy and Mineral Resources, Biodun Ogunleye, stated that these agreements represent a restructuring of Lagos’ embedded power system. Fenchurch Power will support major water facilities in Adiyan and Iju, Mainland Power will continue serving Ikeja, Oshodi, and Anthony with plans for expansion, and Viathan Engineering Limited will maintain stable power supply to key facilities on Lagos Island. The new framework eliminates legacy payment structures like "take or pay" and "deemed energy," ensuring payments are tied to metered supplies and actual delivery. Governor Babajide Sanwo-Olu emphasized that these revised contracts reflect a stronger focus on accountability and efficiency in public spending, aiming to provide more reliable power for public infrastructure and better use of state resources. The state expects a significant increase in generation capacity from less than 60MW to over 200-400MW within two to three years. These reforms are part of a broader strategy to decentralize power generation, improve reliability, and ensure long-term sustainability of electricity supply across critical public assets.
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