The Lagos State Government has projected an investment requirement of $14 billion to $33 billion to address its energy generation needs by 2030.
This was disclosed by Mr. Kamaldeen Balogun, General Manager of the Lagos State Electricity Board, during the 15th Ralph Alabi Memorial Lecture and the induction of new corporate members of the Nigerian Society of Engineers (NSE) Ikeja Chapter.
The event, themed “Opportunities in Emerging Power Sector: A Panacea for Economic Stability and Industrialisation”, highlighted the importance of innovative solutions in the power sector for economic growth and industrialisation.
In his keynote address, Balogun stated that the Lagos Bureau of Statistics provided the investment figures, underscoring energy supply as Lagos State’s most significant infrastructure and developmental challenge.
“Lagos State is poised to ensure adequate and reliable power supply to its citizens through the Lagos Electricity Market,” he said.
Currently, Lagos receives only 1,000 megawatts of power daily, available for an average of 12 hours, against the state’s requirement of 9,000 megawatts.
Opportunities in the Power Sector
- Balogun noted that the power deficit presents vast opportunities for investment in the generation, transmission, distribution, and retailing segments of the power value chain.
- He explained that the Lagos power sector offers investment opportunities in Independent Power Plants (IPPs), renewable energy (particularly solar), off-grid and mini-grid solutions for underserved areas, and energy storage systems to improve reliability.
“Emerging sectors like electric vehicle infrastructure and waste-to-energy projects offer long-term potential,” Balogun added.
Leveraging the 2023 Electricity Act
- He further highlighted the significance of the 2023 Electricity Act, which empowers states to generate, transmit, and distribute energy within their jurisdictions.
- According to him, this legal framework positions Lagos to take bold steps toward improving power supply through the Lagos Electricity Market.
“The Lagos Electricity Market Implementation Plan is a key initiative to enhance power generation and distribution, with a target to generate 3,000 megawatts of electricity within the next 30 months,” he said.
Balogun explained that the plan focuses on:
- Grid Modernisation: Upgrading infrastructure with smart technologies to improve reliability and efficiency.
- Renewable Energy Integration: Targeting 1,000 megawatts of power from solar and off-grid solutions to diversify the energy mix.
- Public-Private Partnerships (PPPs): Encouraging private sector involvement to finance energy projects and expand infrastructure.
“It includes a strong focus on capacity building, ensuring workforce training for engineers, technicians, and craftsmen in the power sector,” Balogun stated.
What you should know
Nairametrics recently reported that the Lagos State government is seeking private companies to invest in gas-fired power plants aimed at tackling the State’s persistent electricity shortfall.
- This initiative, announced by the Ministry of Energy and Mineral Resources (MEMR) in partnership with the Office of Public-Private Partnerships (OPPP) on Wednesday, seeks to generate up to 500MW of electricity across four designated hubs in the state.
- With a population exceeding 20 million, Lagos remains Africa’s largest metropolitan area and Nigeria’s economic powerhouse.
- However, the city’s energy demands far surpass the supply from the national grid. The government revealed that while Lagos requires over 6,000 MW of electricity, the existing DisCos supply less than 2,000 MW at peak periods.