Nigeria: Victoria Island Set for 40MW Dedicated Power Supply

Victoria Island businesses in Lagos are set to gain access to a dedicated 40MW electricity supply as Elektron Energy nears completion of its embedded power plant in Lagos Island.

The facility is being developed with Eko Electricity Distribution Company under a licence from the Lagos State Electricity Regulatory Commission and is expected to be commissioned after construction is completed.

The development was disclosed on Thursday at the Victoria Island Power Customer Experience Day, where business leaders and customers toured the project site and received technical briefings on the facility.

The project is significant because Elektron Energy says it is designed to provide businesses with an alternative to self-generation. The company said the electricity would be delivered through a professionally managed distribution network, giving businesses access to dedicated power without relying as heavily on diesel generators.

The facility is powered by Wärtsilä engine technology and is being developed specifically to serve businesses in Victoria Island, one of Lagos’ major commercial districts.

Dedicated supply to replace costly self-generation

Elektron Energy said the project would help businesses reduce their reliance on diesel generators and have greater predictability over energy costs and electricity supply.

Ayomide Oladapo, Executive Director, Business Development, Elektron Energy, said businesses in Victoria Island had spent years dealing with unreliable electricity and the costs linked to self-generation.

He said the new facility would provide dedicated electricity managed through a professional system, reducing the burden associated with fuel logistics, generator maintenance and operational disruption.

Oladapo said the project was intended to give businesses more confidence in their electricity supply so they could concentrate on productivity and long-term business activities.

The company has positioned the project as an embedded power arrangement, with electricity generated close to the businesses it is intended to serve. Its 40MW capacity will be connected to a dedicated distribution network covering businesses in Victoria Island.

For businesses that currently depend on generators when electricity supply is unreliable, the project offers a different supply arrangement. Instead of each business having to handle its own generation equipment and fuel requirements, electricity from the plant will be supplied through the network developed for the district.

The project is being carried out in partnership with Eko Electricity Distribution Company. Its operation also falls under the regulatory framework provided by the Lagos State Electricity Regulatory Commission.

Wärtsilä technology powers the facility

Wärtsilä engine technology will provide the generation equipment for the 40MW plant.

Mika Gummerus, Wärtsilä Site Manager, Energy Services & Upgrade, said the project brings technical expertise, infrastructure and long-term planning into one power supply system serving Victoria Island.

Gummerus said Wärtsilä was applying its experience in flexible and efficient power generation through its partnership with Elektron Energy to supply embedded electricity to the commercial district.

He said the project involved cooperation from system design through operation, with the aim of making electricity supply more dependable and efficient for businesses using the network.

The use of Wärtsilä engines is a major technical feature of the project. The company has been involved in the technical side of the facility as Elektron Energy prepares the plant for commissioning.

The project is also backed by the ARM-Harith Infrastructure Fund, Nigeria Sovereign Investment Authority, InfraCredit and the Bank of Industry.

Their involvement provides financial backing for the development of the power facility as it approaches the commissioning stage.

The Victoria Island Power Customer Experience Day gave participants an opportunity to see the facility and receive information on its technical development before operations begin.

During the event, attendees were taken through the 40MW plant and the technology behind the generation system. They were also briefed on the work being done ahead of commissioning.