Lagos invites bids to construct gas-fired power plants

LAGOS, November 8, 2024 – Nigeria’s largest city, Lagos, has invited bids to construct gas-fired power plants that can produce up to 4 GW of power, Lagos State’s Ministry of Energy and Mineral Resources and Office of Public-Private Partnerships announced on Thursday.

The Lagos government seeks proposals for plants that will be located at four hubs near existing power distribution substations. Each hub will produce at least 500 MW of electricity. Companies who wish to join the project will be required to produce at least 100 MW at one of the hubs.

Financing will be done through power purchase agreements made with the Clean Lagos Electricity Market, a Lagos State government initiative aiming to provide Lagos with clean and reliable energy. The plant projects will include EPC, testing and commissioning, operations and maintenance, and fuel sourcing.

The power-plant projects intend to cover Lagos’s large power deficit. Lagos requires 6 GW of power to cover its electricity demand but currently only receives 2 GW from the national grid during peak times. This shortage has inhibited investment and economic development in Lagos.

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