The Lagos State Government has planned to achieve 1 gigawatt (GW) of solar photovoltaic generation by 2030 through its Off-grid Electrification Strategy and Action Plan.
Babajide Sanwo-Olu, governor of Lagos State, said on Tuesday that the federal government’s recent Constitutional Alteration Bill No. 33 grants the state authority to regulate electricity generation, transmission and distribution.
He said: “This will create a Lagos Electricity Market, increasing access to electricity, investments and job opportunities. The new bills will promote efficiency, leading to better service delivery.
“We have been preparing for this by launching an Electricity Policy, publishing our off-grid strategy, presenting our Integrated Resource Plan and drafting a law to establish the Lagos Electricity Market.”
Lagos State’s off-grid electrification plan states that $1 billion is required from the government and private sector to fund its 1GW off-grid solution.
The state said it will set up an electrification fund, empowered by applicable laws, with the Lagos State electrification agency responsible for its disbursement.
“It will be funded by a mix of public finance, including State Off-Grid Solutions budgetary allocations; private finance from institutional investors; donor and development institutions; multilateral finance institutions, and green and climate finance funds; and any other sources of finance as identified and designated by the state.”
The plan also states that Lagos may consider other relevant private-public partnership models, such as joint off-grid solution project finance, which can be achieved through a special purpose vehicle with the state’s contribution through land or capital sourced from the state’s electrification fund.
It added: “The state may also consider concession arrangements to off-grid solution providers in electrifying areas such as build-own-operate-transfer; build-own-operate; build/purchase-own-transfer; and power as a service.
“The state will explore appropriate models in its partnership with the private sector and support appropriate private sectors models such as Pay-As-You-Go and Lease-To-Own where relevant while encouraging gender and social inclusion.”
According to the electrification plan, the 1GW solar off-grid solution will electrify 1.6 million households (36 percent of Lagos) and create 40,000 jobs by 2030.
Read also: Lagos eyes 1GW by 2030 on new law – Sanwo-Olu
Sanwo-Olu said the bill signed by President Muhammadu Buhari granting states autonomy in the electricity market will strengthen plans to install the 1GW of solar energy by 2030 and increase access to electricity, investments and job opportunities.
“We are committed to achieving 1GW of solar energy in Lagos by 2030 and have engaged with the World Bank for suitable funding. With the creation of the Lagos Electricity Market, we will fulfil our potential as Africa’s model mega city,” Sanwo-Olu said.
For Chinedu Onyegbula, an energy sector expert and director at Bullox Resources Limited, investment capital is largely available for Lagos, given the surge in green financing opportunities globally, looking for viable projects in emerging markets.
He said: “Lagos State, no doubt, fits that description. There is enough suppressed demand, given that Lagos and its environs currently take up to 25 percent of currently available power generated, and lots more customers are not connected to the grid, preferring to be captive or being unserved or underserved.
“The state sits on a huge untapped gas potential, the infrastructure is largely available, or at least the investment requirement to unlock makes a good investment case. Gas-fired power plants can be developed in Lagos state to power the 1GW off-grid solution.”
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