A new 30-megawatt (MW) gas-fired power plant is set to rise on Victoria Island, Lagos, following a landmark agreement between Nigerian independent power producer Victoria Island Power Ltd. (VIPL) and global energy technology company Wärtsilä.
In a statement issued by Katri Pehkonen, Wärtsilä Energy’s Communications Manager, the Finnish firm will supply the plant’s power generation equipment and handle its operation and maintenance for an initial five-year period. The Engineering, Procurement, and Construction (EPC) contract, as well as the Operations and Maintenance (O&M) agreement, were awarded by VIPL, a special purpose vehicle created by Lagos-based Elektron Energy. Wärtsilä recorded the contract in its Q4 2024 bookings.
The plant, which will be embedded within the Eko Electricity Distribution Company (EKEDC) network at its NEPA Close site, will run on natural gas and is aimed at improving power reliability for EKEDC consumers. VIPL has also secured Power Purchase Agreements (PPAs) with individual clients through a service-based tariff structure.
“Elektron conceptualised, developed, and funded the IPP and brought Wärtsilä on board to take full responsibility for the major construction and operational aspects,” said Deen Solebo, Co-CEO and CFO of Elektron Energy. “This cutting-edge project will utilise reciprocating internal combustion engine (RICE) technology to deliver reliable and efficient electricity to customers.”
Solebo noted that site preparation activities are well underway and expected to conclude by Q2 2025, after which full construction will begin. Commissioning is projected for 15 months thereafter, with the O&M agreement taking effect shortly before the plant becomes fully operational.
The facility will be powered by three Wärtsilä 34SG gas engine-generator sets, with the infrastructure designed to accommodate a fourth unit in the future with minimal disruption. The modular nature of the project is expected to streamline future expansion.
“This project demonstrates growing interest among developers and financiers in modular, locally supported energy solutions,” said Marc Thiriet, Energy Business Director, Africa, Wärtsilä Energy. “Wärtsilä offers a rare combination of global expertise and strong local presence, giving investors and end-users confidence in long-term partnerships.”
Elektron Energy also acknowledged its institutional and financial partners—ARM Harith Infrastructure Fund LP, Nigerian Sovereign Investment Authority, InfraCredit, Bank of Industry, FBNQuest, and Stanbic Infrastructure Partners—for their critical support.
Once completed, the plant will be the first of its kind in Nigeria in terms of its size, financing structure, and embedded design, setting a new standard for urban power projects across the country.
