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Lagos signs agreement to build 3000 MW embedded power plants
The first phase of the project (520MW in the first quarter and 1,070MW by fourth quarter) would be commissioned before the end of 2018.
R-L Lagos State Governor, Mr. Akinwunmi Ambode, with Minister of Works, Power & Housing, Mr. Babatunde Fashola and Deputy Governor, Dr. (Mrs) Oluranti Adebule during the visit of the Minisiter to the Governor in Lagos.
According to information, the agreement of the $3billion project was signed by the Governor, Mr Akinwunmi Ambode in Lagos on Tuesday, June 20, 2016, and expected to be actualized in the next seven years.
The project, though subject to the approval of the Nigerian Electricity Regulatory Commission (NERC), is aimed at adding 3,000MW incremental electric power to drive meet the burgeoning commercial and economic activities power need in the state.
“Given the intractable challenges of local gas market, and to guarantee uninterrupted gas supply to the EPPs, Lagos State has finalised arrangements with reputable international gas suppliers to deploy a floating storage and regasification unit (FSRU) to be moored on Lagos waters and this will be further supported by trucking of LNG from the South-South (in the short-term),” said the document.
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Details of the agreement further revealed that the Lagos state government will provide 3-month rolling bank guarantees to support the Power Purchase Agreement (PPAs), in collaboration with the ElectricityDistribution companies (DISCOs) and Embedded Power Providers (EPPs), to enhance the financial viability of the projects.
The government also hope to secure adequate gas supply for the projects through its newly established Oil and Gas company, Ibile Oil and Gas Company.
The first phase of the project would be commissioned before the end of 2018 (520MW in the first quarter and 1,070MW by fourth quarter), while prospective EPPs will generate and inject off-grid power for distribution through the network of Eko and Ikeja Distribution Companies.
The government also revealed that it will be embarking on a comprehensive power audit exercise in areas (Epe, Ikorodu, Ikeja, Badagry, Marina, Ibeju Lekki, Apapa and Ikoyi) it planned the deployment of the EPPs.
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