In order to address persistent power shortages, the Lagos State Government is calling on investors, independent power producers, and energy solution firms to submit bids to establish 4,000MW gas-fired power plants. The initiative follows a series of recent national grid failures, with two collapses occurring in just one week and a total of 11 this year alone.
The Lagos State Ministry of Energy and Mineral Resources, partnering with the Office of Public-Private Partnerships (PPP), announced this bid opportunity as part of the ‘Clean Lagos Electricity Market’ (CLEM) project, which aims to create sustainable energy alternatives for the state.
In a statement on Thursday, Biodun Ogunleye, Commissioner for Energy and Mineral Resources, and Bukola Odoe, Special Adviser on PPP, underscored the urgent need to bolster power capacity amid unreliable national grid performance.
On Thursday, yet another grid collapse within 72 hours left much of Nigeria in darkness, underscoring the need for reliable alternatives. Lagos State, which requires over 6,000MW of electricity, currently receives less than 2,000MW at peak times from distribution companies.
“The Lagos State Ministry of Energy and Mineral Resources (MEMR), in collaboration with the Office of Public-Private Partnerships (OPPP) and other development partners, is pleased to announce its intention to allocate sites for the generation of grid-connected electricity for the Clean Lagos Electricity Market (CLEM),” the statement noted.
Lagos plans to establish four power hubs, each with a minimum generation capacity of 500MW, encouraging one or more power-generating firms to fulfill this demand.
“The minimum expected generating capacity for participation in any of the four hubs for any firm shall not be less than 100MW,” the state clarified.
The project scope encompasses financing, engineering, procurement, construction, commissioning, and testing to meet grid performance criteria. Selected bidders must also operate and maintain the plants, secure a reliable fuel supply, and generate no less than 100MW per hub.
Lagos State requires each bidder to be either a single entity or a consortium with the required technical, financial, legal, and specialist expertise. For consortia, a lead company must be designated to coordinate with the project delivery team.
Interested bidders are directed to register electronically on the state’s e-procurement platform at lagosppa.gov.ng to submit required documentation. The deadline for applications is set for 5 p.m. on November 22, 2024.