Powering Lagos Of The Future: The Lagos State Embedded Power Programme

On my resumption of office as Governor of Lagos State, one of the many firm resolves I made was to tackle the structural and administrative issues slowing down our State from realising its full economic potentials. You will agree with me that the problems plaguing the entire power sector value chain in Nigeria has had very negative impact on productivity, sustainable growth and development of the nation.

While the Federal Government continues in its efforts to resolve the power crisis, it has become clear that the problems in the Energy Sector can no longer be left to the Federal Government alone to solve. The sustainable solution going forward is one that pools together the commitment and resources of ALL stakeholders in the power value chain.

In this regard, and in fulfillment of my election promise to create an enabling environment for people and businesses to thrive in Lagos State, our government initiated the Light Up Lagos programme as a platform to drive sustainable intervention in the following areas:

1. Street Lighting – To improve illumination, aesthetics, night economy and security in the state.This isbeing relentlessly pursued, with over 47,000 poles of street lights under concession for effective management and optimum performance.

2. Rural electrification – To improve grid and off grid power to communities. In this regard, about 67communities in the IbejuLekki axis were connected to the grid in March 2016 after about six years off grid. Another 32 communities in Badagry have not had access to electricity for over sixteen (16) years. We have been working around the clock and I am delighted to inform you that the communities will be connected to the grid within the next 21 days.

3. Embedded Power – To work with stakeholders towards achieving a 24-hour power for Lagos.

The overall objective of our power intervention programme is to ensure ENERGY SECURITY for Lagos State, by implementing the following:

• Generate up to3,000MW ofpower through accelerated deployment of various Embedded powerplants in strategic locations in the State within 3 to 7 years. It is planned that 350MW of this incremental power will be delivered by Q1 2018, additional 850MW by Q4 2018, and the balance of 1,800MW not later Q3 2022.The State Government will support the Power Purchase Agreements (PPAs)that will be signed between the Distribution companies and the embedded power providers, to enhance bankability of the projects.

• Distribute the Embedded Power, off-grid, within Lagos State through the network of Eko and Ikeja distribution companies. We will support the distribution companies in upgrading their distribution infrastructure and installation of smart prepaid meters in the areas where embedded power is deployed.

• Other areas of collaboration will include support for collection, appropriate legislation and enforcement of power theft laws.

• We will actively collaborate with operators of oil blocks in the Lagos area to accelerate the extraction of gas feedstocks for power generation. Alternative sources of fuel will be explored to sustain uninterrupted power supply in the medium to long term, including partnerships on investments in gas pipeline infrastructure through the State’s owned oil and gas Corporation – Ibile Oil and Gas.

In August 2016, the State’s Ministry of Energy & Mineral Resources presented its findings from the Power Advisory Committee to The State Executive Council and outlined The Roadmap for Powering Lagos of The Future with strategic focus on Embedded Power.

The presentations made where well received by the State Executive Council, leading to the setting up of a Technical Committee to review the Embedded Power proposals and advise the government on its implementation. I thank members of the Technical Committee, which includeGeneral Electric, Siemens, Schneider Electric, Shell Gas, PriceWaterhouseCoopers-PWC, Crisps Capital, Gaslink, Falcon Gas, Eko Distribution Company, Ikeja Electric, Detail Solicitors, Gbolahan Elias & Co, Powertech Limited, Ibile Oil & Gas Corporation, Egbin Power Company, Access Bank, Sparkwest Limited and I-Zap Engineering Services.

I am delighted to receive the report of the Technical Committee on the Lagos State Embedded Power Programme. I have a strong conviction that the wealth of knowledge available within the committee would validate the assumptions and recommendations contained in this report.

It is my hope and belief that the integrated road map contained in your report will deliver to the people of Lagos State an uninterrupted power supply, which will in turn spur economic growth and prosperity.

Let me use this opportunity to thank every member of the Power Advisory Committee, the precursor to laying the solid foundation upon which the Technical Committee was birthed. I would also like to commend them and the State’s Energy Team for putting together this report. I am confident that we can collectively –  Government, industry key players and the private sector represented here defeat the most burning challenge facing our State and country, most especially now as Lagos turns 50!

Distinguished ladies and gentlemen, thank you all for your attention.

ItesiwajuIpinleEko…..lo je walogun!