The Lagos state government is set to supply power to its residents via a locally-generated power for the next three years as proposed.
After obtaining 400 megawatts of additional supply, Lagos is placing a wager that the nation’s ongoing power problems can be addressed outside of the national grid by expanding state-backed power generation and distribution.
At a conference hosted by the BusinessDay newspaper on Tuesday, Lagos State Commissioner for Energy and Mineral Resources Biodun Ogunleye revealed this, stating that the state is committed to lowering reliance on the unstable national grid.
“We are seeking to move beyond a single point of failure,” Mr Ogunleye was quoted to have said.
ENigerian Newspaper learnt in Ogunleye’s report that Lagos has entered up power purchase agreements (PPAs) with Fenchurch Power, Mainland Power, and Viathan Engineering Limited as part of its plan to provide up to 400 megawatts of electricity to public buildings over the course of the following three years.
According to Mr. Ogunleye, the deals mark a significant shift from the traditional methodology of power purchase. As a result, decentralized power markets are made possible by the Electricity Act of 2023, which gives governments the authority to control electricity inside their borders.
According to data from the Nigerian Electricity Regulatory Commission (NERC), at least 22 states have started establishing electricity markets in an effort to lessen dependency on the centralized system run from Abuja. The report indicates that over 15 states are in different phases of turning on their electricity markets; some have already set up regulatory commissions and included power planning into more comprehensive economic plans.
Lagos, however, is now leading the way in putting the change into practice.
In addition, Lagos has abolished the contentious “take-or-pay” and “deemed energy” policies, which had previously demanded payments even in the absence of power. Rather, the state will only cover the actual supply of metered power.
