Elektron Energy Secures Lagos Generation Licence

The Lagos State Electricity Regulatory Commission (LASERC) has granted Elektron Energy Development Strategies Limited a licence to generate electricity in the state, clearing a regulatory hurdle for the company’s planned expansion of embedded power supply.

The licence comes as Elektron prepares to bring its flagship Victoria Island Power (VIPL) project into commercial operation in December 2026.

The Phase 1 project is a 40MW gas-fired embedded power plant developed in partnership with Eko Power, formerly known as Eko Electricity Distribution Company (EKEDC).

The facility is designed to serve major commercial customers in Victoria Island, including banks, hotels, telecommunications operators and multinational companies.

Victoria Island plant targets December operation

Elektron said several major construction milestones have been completed, including the installation of Wärtsilä generation engines.

Supporting infrastructure for the plant is also at an advanced stage, according to the company.

When commissioned, VIPL is expected to provide dedicated electricity around the clock to connected customers through a 12.6-kilometre underground feeder network.

The plant can be expanded from its initial 40MW capacity to 70MW under a full build-out plan.

Elektron Energy Chief Executive Officer Tola Talabi said the generation licence provides the regulatory foundation for the company to continue developing dedicated power infrastructure for commercial and industrial customers.

“This licence represents an important step forward for Elektron and for the businesses and communities we serve,” Talabi said.

He added that dependable power would be central to Lagos’ continued economic growth and that the company was committed to developing infrastructure suited to the needs of commercial customers.

Elektron plans more embedded power projects

Elektron has operated embedded power infrastructure in Nigeria for more than 14 years.

Its existing projects include the 10.6MW Alausa Independent Power Project, which has supplied Lagos State Government facilities since 2013 through a 15-kilometre distribution network.

The company also operates a 7MW power installation serving Rack Centre, a Tier III data centre in Ikeja.

Elektron has a pipeline of proposed embedded power projects at Sangrosse, Ogba, Ibeju-Lekki and Tokarawa, with planned capacities of 40MW, 40MW, 40MW and 20MW respectively.

VIPL is backed by institutional investors including ARM-Harith Infrastructure Fund, InfraCredit, Nigeria Sovereign Investment Authority and the Bank of Industry.

Wärtsilä is the project’s engineering, procurement and construction contractor and will also provide long-term operations and maintenance services.