Nigeria’s Lagos state government signed an agreement with investors to generate 3,000 MW of electricity over the next seven years. The agreement, Lagos State Embedded Power Program, involves the supply of 3,000 MW of electricity at a cost of $3 billion.
The project is subject to the approval by the Nigerian Electricity Regulatory Commission.
Phase 1 of the program will be commissioned before the end of Q1 2018 and will deliver 520 MW of electricity while another 1,070 MW will be delivered in Q4 2018. The remaining 1,410 MW will be completed by 2022.
Under the agreement, the state government will provide a three-month bank guarantee to support the Power purchase Agreements (PPAs), expected to be signed between the distribution companies (Discos) and the embedded power providers. This will enhance the bankability of the projects.