The Lagos State Government is inviting investors, independent power producers, and energy solution companies to bid for the establishment of 4,000MW gas-fired power plants. This announcement comes as Nigeria’s national grid has collapsed twice in one week, marking the 11th outage in less than a year.
The Lagos State Ministry of Energy and Mineral Resources, in partnership with the Office of Public-Private Partnerships (PPP), is seeking bids for gas-fired power plants as part of the ‘Clean Lagos Electricity Market’ (CLEM) initiative.
In a joint statement released on Thursday, Biodun Ogunleye, Commissioner for Energy and Mineral Resources, and Bukola Odoe, Special Adviser on PPP, highlighted the urgency for sustainable alternatives to the national grid, which fails to meet the country’s energy needs.
On Thursday, the national grid collapsed again within 72 hours, plunging much of the nation into darkness. Lagos stated that its energy demand exceeds 6,000MW, while current supply from distribution companies (DisCos) is below 2,000MW at peak times.
“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 state government stated.
Each of the four hubs will have a minimum generation capacity of 500MW, with one or more firms generating this capacity.
“The minimum expected generating capacity for participation in any of the four hubs for any firm shall not be less than 100MW,” the statement added.
The project scope includes financing, engineering, procurement, construction, commissioning, and testing to meet grid performance standards. The selected bidder will also be required to operate and maintain the plant, ensure fuel supply, and generate at least 100MW for the clean Lagos electricity market.
Lagos mandates that all bidders be either a single company or a consortium with the necessary technical, financial, and legal expertise. Consortia must jointly submit all required documents and identify a lead company to coordinate with the project delivery team.
Prospective bidders are to register electronically via the state’s e-procurement platform at lagosppa.gov.ng, where they will submit required documents. The application deadline is set for 5pm, November 22, 2024.