May 25, 2024

Eko Disco, Elektron Energy perform groundbreaking for 30MW gas-fired power plant in VI 

 

… as EKEDC sets to increase MYTO load allocation from 513 MW to 543 MW

 

Oredola Adeola

 

The Eko Electricity Distribution Company, a leading power distribution companies, has partnered with Elektron Energy to build a 30 Megawatts (MW) natural gas-fired power plant in Victoria Island, Lagos State, Nigeria, with a target of increasing its Multi-Year Tariff Order (MYTO) load allocation from 513 MW to 543 MW, at the short term, and average of 474 MW at medium term, through embedded generation into its distribution network.

 

The groundbreaking was held on Tuesday, in Victoria Island, Lagos.

EnergyDay’s check showed that the embedded generation, a small-scale power generation facility that is connected to the distribution network and located close to the point of consumption, is expected to complement the power supply received by the DisCo from the national grid, which has over the years proven to be inefficient and unreliable.

Mr. Oritsedere Otubu, EKEDC’s ChairmanBoard of Directors in his address at the ceremony said that the project is part of a larger effort to increase electricity supply to its customers under the network franchise areas.
According to him, the groundbreaking ceremony of the construction of a state of art 30MW power plant will  revolutionalise the energy landscape of Lagos State, thanks to our collaborative endeavour with Elektron Energy.
Otubu said, “The real need to deliver optimal supply to  Lagosians sparked the conversation on this project as far back as 2015 when Eko DisCo pioneered the discussion on embedded generation.
“Inextricably linked with this is the gap in generation which has been a lingering issue impacting service delivery in the power value chain particularly, the ability of DisCos to meet its service level commitment to customers.
“Currently, the industry still records over 4,000MW as its peak generation of which studies have shown that the same is not enough to service Lagos State estimated as having a population of over 27 million people let alone the country.
Otubu therefore noted that these real issues contributed to the discussion that culminated in the Project.
 He said, “This project’s journey effectively took off with the invitation of tenders from prospective bidders and Elektron Energy qualifying as the preferred bidder for the Project. The emergence of Elektron Energy gave birth the partnership between it and Eko DisCo and that has over the years led to the unlocking of premium power access to Lagosians within the Eko DisCo Franchise network.
“Electricity, it is said, is the livelihood of modern society, driving economic progress, empowering industries, and improving the quality of life of our citizens.  However, we still struggle with its challenges. Today, we rise to those challenges and embark on a transformative path towards a brighter future through this project.
The EKEDC’s Board Chairman further noted that the power plant will employ cutting-edge technologies, ensuring efficiency, reliability, and reduced environmental impact. He added that the power generated in the plant will not only meet the current energy demands but also anticipate and accommodate the future needs of Lagosians.
He further said, “Power Plants will generate countless job opportunities, driving economic growth and empowering our communities. As the construction progresses, we will create employment for local workers, stimulate local businesses and foster a spirit of empowerment and inclusivity.
“With an MYTO load allocation of 513MW, an addition of 30MW edges EKEDC towards meeting its demands requirement to its customers, and with an increased capacity, Eko Electricty has been incentived to surpass the demand, market obligations and meets key market Performance indicators,” the Board Chairman said.
Utubu therefore stated that beyond any doubt, the gains that this project presents are humongous and they include but are not limited to, increase efficiency, reliable supply to, increase revenue, and incentive to undertake capital investment in the network and expansion projects.
Mr Tola Talabi,  Chief Executive Officer, Elektron Energy Development Strategies Ltd., said that the project is a natural gas fired embedded generation plants developed through the collaborative effort of Elektron and EKEDC.
Talabi said that the embedded IPP would supply uninterrupted electricity through dedicated 33KV and 11KV distribution network, exclusively to identified customers.
He said that the project is the first of its kind, where a natural gas IPP would be directly embedded into a Disco’s distribution network for supply to identified end-user customers.
According to him, the 18- months project, when completed, will ensure reliable, affordable electricity to customers.
” The 50 million dollars investment project will demonstrate the viability and accessibility of power supply in Lagos,” he said.
Gov. Babajide Sanwo-Olu of Lagos commended the companies for the bold step to provide uninterrupted power supply in Lagos.
Sanwo-Olu was represented by  Ms Shola Shasore, Permanent Secretary, Lagos State Ministry of Energy and Mineral Resources, said that the project was a welcoming development and urged other companies to follow suit.
He said that “This is what we love to see and we hope it will continue in the state because we desire an affordable power supply.