Another Electricity Company Begins Operation in Lagos, IE, EKDC, Others to Buy Power
- Elektron Energy secures LASERC licence to generate electricity and deepen private-sector participation in Lagos’ power market
- Company’s 40MW Victoria Island gas-fired plant is scheduled to begin commercial operations in December 2026
- VIPL will deliver round-the-clock power through a 12.6-kilometre underground network, reducing businesses’ reliance on diesel generators
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Elektron Energy Development Strategies Ltd. has secured a licence from the Lagos State Electricity Regulatory Commission (LASERC) to generate electricity in Lagos State, marking another step towards decentralising power supply in Nigeria’s commercial capital.
The licence is expected to strengthen private-sector participation in Lagos’ electricity market as the state continues to attract investments aimed at improving reliable and affordable power supply.
Source: Getty Images
Elektron Energy Chief Executive Officer, Tola Talabi, disclosed the development in a statement on Wednesday in Lagos.
Elektron gets licence to generate power
Talabi said the licence demonstrated LASERC’s confidence in Elektron Energy’s technical, operational and regulatory capabilities.
He said the approval would provide the company with the regulatory foundation to expand its power-generation activities and support businesses and communities requiring dependable electricity.
According to him, the licence also aligns with Lagos State’s efforts to decentralise electricity supply, attract private investment and reduce dependence on the national grid.
“This licence represents an important step forward for Elektron and for the businesses and communities we serve,” Talabi said.
He added that the company would continue developing purpose-built power infrastructure to meet the growing electricity needs of Nigeria’s commercial and industrial sectors.
40MW Victoria Island plant nears completion
The licence comes as Elektron Energy advances work on its flagship Victoria Island Power Ltd. (VIPL) project, which is scheduled to begin commercial operations in December 2026.
Talabi said Phase 1 of the project, developed in partnership with Eko Power, formerly known as Eko Electricity Distribution Company (EKEDC), would have an initial generation capacity of 40 megawatts.
The gas-fired embedded power plant is designed to be expanded to 70MW as demand grows.
The project will target businesses and major commercial establishments in Victoria Island, including banking headquarters, hotels, telecommunications facilities and multinational companies.
Talabi said several construction milestones had already been achieved, including the installation of Wärtsilä generation engines, while other supporting infrastructure was at an advanced stage.
Plant designed to provide 24-hour electricity
Upon completion, VIPL is expected to supply electricity around the clock to connected customers through a 12.6-kilometre underground feeder network.
The project could provide businesses in Victoria Island with an alternative source of electricity while reducing their reliance on diesel generators and other backup power systems.
Source: Getty Images
Talabi said Elektron Energy had more than 14 years of experience developing and operating embedded power infrastructure in Nigeria.
Its existing portfolio includes the 10.6MW Alausa Independent Power Project, which has a 15-kilometre distribution network and has supplied electricity to Lagos State Government facilities since 2013.
He said the new generation licence would enable Elektron to play a bigger role in the development of Lagos’ electricity market.
FG probes N120bn power theft
Legit.ng earlier reported that the Federal Government has ordered a formal investigation into energy theft along the 132kV Ikorodu–Sagamu industrial corridor in Lagos, where power losses are estimated at roughly N120 billion every year.
Minister of Power Joseph Tegbe disclosed at a high-level stakeholder meeting in Lagos that unaccounted electricity losses along the corridor amount to about 100 megawatts annually.
Source: Legit.ng
