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Four years after huge investment Lagos power plants scarcely work

These are: 270MW AES Power Project in Ikorodu, 10MW Lagos Island Power Project, Chevron Agura Power Plant in Ikorodu, Oando’s Power Plant in Akute and Manufacturers Association of Nigeria (MAN) Power Plant in Ikeja.


AES Power Plant

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In 2000, former Governor Bola Tinubu partnered with AES Nigeria to build an Independent Power Plant to generate 270MW for Lagos residents. The power generated was consumed locally but later transmitted to the national grid due to some challenges in the operational framework in the energy sector.

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Sources said the plant’s generation capacity may have dwindled in recent time due to erratic gas supply from escravos. Residents of Ikorodu, where it is cited attested to the low supply of electricity there as a result of the drop in the plant’s generation capacity

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Lagos Island Power Project

The Island Power Project is to generate 10MW and is located on Marina, opposite the General Hospital. Two years ago, the Lagos State Government (LASG) entered into a Power Purchase Agreement (PPA) with Island Power Limited (a part of Negris Group) to build, own and operate a power plant to provide 24-hour uninterrupted power supply to the General Hospital, Lagos Island; High Court, Catholic Mission Street; High Court Annex, TBS; Magistrates Court, Igbosere Street; Island Maternity Hospital, Lagos Island; State House, Marina; and to power street lights for 20 streets within Lagos Island, an 18km dedicated underground distribution network, all being powered using gas engines.

The plant comprises four units of 1.5MW MWM gas engines and units of 2MW MWM diesel engines. The Island Power Project was expected to increase the frequency of power supply to these facilities from 35 percent to 100 percent.

The project which was commissioned in May this year, is to help reduce environmental pollution as the plant runs on Compressed Natural Gas (CNG).

According to the Lagos State Government, the development will lead to the eradication of 30 diesel and petrol generators of various sizes thus ensuring cleaner air and reduction in noise pollution. Most of these expectations, residents say are yet to met.


Oando Akute Independent Power Plant

Last year, Oando Plc, one of the nation’s indigenous energy group commissioned its first IPP, Akute Power to supply stable electricity to the Lagos Water Corporation (LWC). The 12.15 megawatt plant was expected to power LWC’s main water intake facility, including two other facilities with a combined installed capacity of 125 million gallons of water per day. The $25.5 million project was finance by Fidelity Bank, one of Nigeria’s leading financial institutions.

According to the company, the project included the construction of a 13km gas pipeline from Oando’s existing natural gas grid in Lagos to supply fuel to the power plant. It added that the gas-fuelled IPP is eco-friendly and enables an immediate increase in capacity utilisation of LWC whilst creating substantial savings for the LWC in annual energy cost.

At the commissioning, Mr Wale Tinubu, Group Chief Executive, Oando Plc said the IPP is a significant milestone for Oando, marking its entry into the Nigerian power sector and another major step in the development of our mid and down-stream business.

Similarly, Mr Babatunde Fashola, the Executive Governor of Lagos State said, “This project is a classic example of how public private partnerships can benefit the people: It means that by shifting from diesel to gas, we are saving 27 percent of our energy cost to provide water, which translates to about $11,000 of taxpayer’s money daily and $3.9 million annually.” This plant is as well not run in full capacity.


Manufacturers Association of Nigeria (MAN)Power Plant

In 2008, the Manufacturers Association of Nigeria (MAN) unveiled plans to spend $200million on its IPP.

The Chairman Infrastructure Committee, MAN, Engineer Odiah was reported to have said what the association’s plan now is to at least generate between 120 and 150 megawatts of electricity between now and a couple of months.

According to him, the main target for now is Ikeja and its environ. “What we plan now is between 120 and 150 megawatt and this will cost us about $200 million. We realized that most of the industries are situated in Ikeja and its environs, so this is the reason why we target that area for now. One thing we must learn is that it is not cheap, it is capital intensive, so we need to do it bit by bit.” he was quoted to have said.

Three years after the plan was unveiled, the plant is yet to come on stream. When contacted, Director-General MAN, Mr Jide Mike told our correspondent that he has no information on the power plant.


Chevron’s Agura Power Plant

Multinational oil company, Chevron Nigeria Limited (CNL)  in 2007 unveiled its groundbreaking ceremony for a 780-megawatt power plant in Agura area of Ikorodu in Lagos.

This combined cycle power generating plant is slated to be up and running in early 2009. When fully operational it was to bring electricity to consumers.

The company described the development as part of its strategy to optimally utilize its gas resources and further business expansion. It added that the plant would require about 120 million cubic feet per day (Mmcf/d) of gas, which is expected to be supplied by its Escravos-Lagos gas pipeline.

NNPC has the major stake of 60 percent in the project, while Chevron retains the remaining 40 percent. At an oil and gas conference in Abuja last year, the company’s Managing Director, Andrew Fawthop reiterated the commitment of Chevron to build the power plant.

Chevron’s General Public and Government Affairs Officer, Engineer Femi Odumabo could not confirm to our correspondent as at press time the state of work on the plant.


Lagos pledges more IPPs

Meanwhile, the Lagos State government has promised to embark on construction of more IPPs.

Fashola made the promise when the Chief Executive Officer of the Nigeria Electricity Regulatory Commission (NERC) Dr. Sam Amadi leading top management staff of the commission paid a courtesy visit to the governor.

Fashola who lamented acute shortage of gas to the plants so far built expressed need for government and major stakeholders to collaborate in the area of gas supply to the plants.

He said the state government is considering building independent power plants that would power the seat of power located in Alausa, industrial and residential estates.

According to the governor,   government had done a power audit of the industrial estates and cluster to know the electricity power requirements in the strategic areas.

Earlier, the Chief Executive Officer of NERC observed that Lagos state requires about 6,000 Mega watts of electricity to function effectively.

NERC said it has issued over 30 licenses to Independent Power Producers in the country in the drive to up electricity generation and supply.

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