The Lagos State Government says it will require an investment of $14 billion to $33 billion to meet its energy generation needs in five years.
Kamaldeen Balogun, General Manager of the Lagos State Electricity Board, disclosed this at the 15th Ralph Alabi Memorial Lecture and Induction of new corporate members of the Nigerian Society of Engineers (NSE) Ikeja Chapter.
The theme of the event is, “Opportunities in Emerging Power Sector: A Panacea for Economic Stability and Industrialisation”.
Balogun, an engineer, while delivering a keynote address at the event, said that the figure was obtained from the Lagos Bureau of Statistics.
According to him, energy supply is currently Lagos State’s single biggest infrastructure and developmental challenge.
He also said that the state receives only 1,000 megawatts daily for average of 12 hours, against the required 9,000 megawatts.
The general manager noted that this was in the light of the 2023 Electricity Act, which gave powers to the states to generate, transmit and distribute energy within their jurisdiction.
“Lagos State is poised to ensure adequate and reliable power supply to its citizens through the Lagos Electricity Market.
Balogun explained that Lagos power sector offers opportunities in Independent Power Plants, renewable energy, especially solar, off-grid and mini-grid solutions for underserved areas, and energy storage systems to improve reliability.
He stated that the gas-to-power projects and smart grid technologies also present lucrative investments, expanding distribution networks, adding that public-private partnerships would further drive growth.
Balogun said that emerging sectors like electric vehicle infrastructure and waste-to-energy projects offer long-term potential.
“The power deficit in the state, the plans and target of the government create vast investment opportunities in the generation, transmission, distribution and retailing sectors of the power value chain.
“The Lagos Electricity Market Implementation Plan aims to enhance power generation and distribution by promoting private sector involvement and independent power producers (IPPs).
“This is to generate 3000MW of electricity to power Lagos State communities within the next 30 months,” he said.
According to him, the electricity market implementation plan focuses on grid modernisation, upgrading infrastructure with smart technologies to improve reliability and efficiency.
The plan encourages renewable energy integration of 1000Mw of power, emphasising solar and off-grid solutions to diversify the energy mix.
Balogun mentioned that public-private partnerships (PPPs) would be crucial for financing energy projects and expanding infrastructure.
He said: “It includes a strong focus on capacity building, ensuring workforce training for engineers, technicians, and craftsmen in the power sector.
“Several new agencies will be created to achieve the set target, namely, Lagos State Electricity Regulatory Commission, Lagos State Independent System Operators, Lagos Power Rangers and Lagos State Electrification Fund.”
In her remark, Margaret Oguntala, President/Chairman, Council of NSE, commended the Ikeja branch for sustaining the annual event held in honour of late illustrious Engineer Ralph Alabi, showcasing his legacy and professionalism in the engineering field.
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