Technology group Wärtsilä has been chosen to provide power generation equipment for a new 30 MW power plant that is being established on Victoria Island in Lagos by a Nigerian independent power producer (IPP). The project, which is being developed by Victoria Island Power Ltd. (VIPL), a special purpose company formed by Elektron Energy, will see Wärtsilä not only supply the equipment but also operate and maintain the power plant for a period of five years.
The power plant, which will run on natural gas, will be situated within the Eko Electricity Distribution Company (EKEDC) at their NEPA Close Site. This collaborative effort between Elektron Energy and their local partners aims to improve the availability and reliability of power supply to consumers serviced by EKEDC. VIPL has also secured power purchase agreements (PPAs) with individual customers based on a service-based tariff philosophy.
Deen Solebo, Co-CEO & CFO at Elektron Energy, expressed his satisfaction with the partnership with Wärtsilä, stating, “This pioneering project relies on reciprocating internal combustion engine (RICE) technology that has the efficiency and flexibility to deliver clean and reliable electricity to our customers.”
Wärtsilä’s Energy Business Director, Africa, Marc Thiriet, highlighted the company’s expertise in engine power plant solutions and services, emphasizing the global company’s local presence that instills confidence in investors and customers alike. Thiriet stated, “The Wärtsilä solution is extensively adopted by industrial, utility & IPP customers worldwide and the excellent credentials and track record have been recognized as a great value proposition by lenders, insurance companies, and multi-lateral funding institutions.”
The power plant will consist of three Wärtsilä 34SG gas engine-generator sets with related auxiliaries, designed to accommodate an extension with an additional engine-generator set in the future. The modular power plant design concept by Wärtsilä allows for cost-effective expansion with minimal disruption to ongoing operations.
This groundbreaking project in Nigeria is expected to set a precedent for similarly sized and locally financed power projects in the country. Elektron Energy acknowledges the support of its institutional investors and funding partners, including ARM Harith Infrastructure Fund LP, Nigerian Sovereign Investment Authority, InfraCredit, Bank of Industry, FBN Quest, and Stanbic Infrastructure Partners, for their contributions to making this project a reality.
