Performance of IPPs under PPP arrangement with Lagos state government

The 1,200 megawatts (MW) of power available to Lagos State from the national grid is a sharp contrast to the estimated 10,000 MW requirement for the state going by recent data. This situation has propelled the state government to resort to self-help in form of establishing a Public-Private Partnership vehicle for Independent Power Plants (IPPs).

The establishment of the IPPs under PPP was part of the state government’s journey towards self-sufficiency in power.

Thus, the power project objectives for Lagos State Government (LASG) include developing, through public private partnership (PPP), integrated and fully independent power generation, distribution and public lighting solution to provide 24 hours uninterrupted power supply to crucial Lagos State facilities within the health, education, security, water, waste management, science and technology, judicial, sport and transportation sectors in the state.

The objectives are building extensive distribution networks to connect additional LASG facilities, construct new public lighting to be connected to the existing power plant and to increase the combined generation capacity of the various power plants to 114MW using natural pipeline gas as the primary fuel source to supply power to off takers.

As of now, 6 IPPs in Lagos State have a combined capacity of 47megawatts (MW) of electricity. The 6 power plants are Akute Independent Power Plant (12.55Mw), Lagos Island 1&2 Independent Power Plant (10Mw), Alausa Independent Power Plant (10.4 Mw), Mainland Independent Power Plant (8.8Mw) and Lekki Peninsula Integrated Power Project (6Mw).

The Island IPP located in Marina with a 10MW capacity holds the record of being the fastest executed and one of the most successful Independent Power Projects in Nigeria. The project is a Public Private Partnership (PPP) between the State Government and Marine Power Limited which also provides operations and maintenance services to the plant. It currently supplies 24-hour electricity to the General Hospital, Lagos (including the Mortuary & Doctors quarters); Island Maternity Hospital, Massey Children’s Hospital, Lagos State Health Service Commission; High Court of Lagos State including the court annexe at Tafawa Balewa Square; Igbosere Magistrate Court; Lagos House Marina; e-Learning Centre; Lagos City Hall; Freedom Park, the Lagos Waste Management Authority loading centre, Dolphin and Onikan Waterworks, several public schools and public lighting installations on 22 Streets within Lagos Island. The project has moved from the previous 18km length under the first phase to record 57km coverage under the second phase

The 10.6 MW Alausa Power Project powers the entire State Secretariat, Alausa and Obafemi Awolowo Way. The Alausa Power plant is a joint venture between the state government, Oando Gas and Fidelity Bank.

The Akute Independent Power Project provides power for the Lagos Water Corporation (LWC) water works located in Akute responsible for 80 percent of the water supply to Lagos. The plant is currently operated on a 24-hour basis and enables the Lagos Water Corporation to pump over 130 million gallons of water daily.

The recently commissioned Peninsula Independent Power project, located in the Lekki Peninsula area of the state, is a Public Private Partnership (PPP) between LASG and Peninsula Integrated Power Limited which seeks to provide dedicated distribution network to supply power to the Lekki water works, Victoria Island water works and public lighting installations in Lekki phase 1 and Victoria Island.

Similar projects in Ikeja GRA and Ikorodu as well as Matori and Imota Industrial Schemes will soon come on stream in addition to the plan to put in place a power plant in Somolu, a popular hub for commercial and industrial printing.

Through this model, the intervention of the Lagos state government in the power sector, the state’s independent power plants have reduced the government’s energy cost by 40 per cent.

Governor Fashola at the 7th Lagos State Climate Change Summit said; “In the area of energy conservation, our independent power plants have led to the reduction of power costs in the running of critical public utilities such as schools, hospitals, waterworks and police stations by close to 40 per cent”.

In his remarks during the commissioning of the Island IPP distribution network expansion in 2013, Dr. Sam Amadi, Chairman, Nigerian Electricity Regulatory Commission (NERC), commended the state government for what he called the ‘‘strategic, creative and innovative’’ electric power solutions being created to make life better for the residents, explaining that the state intervention in power was unique in the sense that the IPPs were targeted at ensuring uninterrupted 24-hour electricity supply in government facilities that service critical areas of need of the residents.

FRANK UZUEGBUNAM