Elektron Energy, an embedded power developer, has unveiled a 40-megawatt power plant designed to provide dedicated electricity to businesses operating in Victoria Island, Lagos.
The company made the announcement on Thursday during a project event attended by business leaders and stakeholders, where it showcased the facility's progress and outlined plans for a new power supply model aimed at addressing the longstanding electricity challenges facing the commercial district.
Speaking at the event, Executive Director of Elektron Energy, Ayomide Oladapo, said businesses in Victoria Island had for years been forced to contend with unreliable electricity supply, leaving many companies with little choice but to depend on costly self-generation.
According to him, businesses have either absorbed the expense of running generators or dealt with the uncertainty associated with electricity from the national grid.
He said neither option offered the level of reliability and predictability required by businesses seeking to plan operations, make investments and expand.
“By delivering clean, dedicated and professionally managed electricity infrastructure, we are giving businesses access to reliable power without the burden of fuel logistics,” Oladapo said.
Cutting dependence on diesel
The Victoria Island Power Limited (VIPL) project is being developed as a 40MW embedded power network that will supply locally generated electricity to businesses through a professionally managed distribution system.
Oladapo said the project would provide an alternative to self-generation while giving customers greater control and predictability over their energy supply and costs.
He said the initiative was designed to reduce businesses' dependence on diesel-powered generators, which have become a major component of operating costs for many Nigerian businesses amid persistent challenges in the power sector.
Beyond reducing fuel consumption, he said the project would help businesses avoid some of the operational difficulties associated with maintaining generators, sourcing fuel and dealing with interruptions to electricity supply.
The ultimate objective, he added, was to enable businesses to concentrate more on productivity, investment and growth rather than power generation.
EKEDC, Lagos electricity regulator partnership
Oladapo disclosed that the VIPL project was being developed in collaboration with Eko Electricity Distribution Company (EKEDC), under a licence issued by the Lagos State Electricity Regulatory Commission.
The project brings generation and distribution capabilities together in an effort to provide dedicated electricity to businesses across Victoria Island.
He explained that the model was designed specifically around the needs of commercial customers, with electricity generated locally and distributed through infrastructure dedicated to the participating businesses.
The project is backed by institutional investors, including the ARM-Harith Infrastructure Fund, Nigeria Sovereign Investment Authority, InfraCredit and the Bank of Industry.
Oladapo said the involvement of the institutions reflected increasing confidence in the capacity of private capital to support the development of critical energy infrastructure in Nigeria's major commercial centres.
Elektron expands distributed energy footprint
The Victoria Island project represents another step in Elektron Energy's expansion of distributed energy infrastructure.
According to Oladapo, the company is drawing on experience gained from previous projects, including the Rack Centre Independent Power Plant (IPP) and the Ibadan Hybrid Power Plant.
He said the VIPL facility was expected to be inaugurated in the first quarter of 2027.
The project is expected to provide a dedicated power supply option for businesses within Victoria Island while contributing to the broader effort to develop more efficient and decentralised electricity systems in Nigeria.
Wärtsilä highlights technology, planning
Mika Gummerus, Site Manager, Energy Services and Upgrade at Wärtsilä, said the project demonstrated the importance of combining technical expertise, appropriate infrastructure and long-term planning in addressing electricity challenges.
He said Wärtsilä was bringing its experience in flexible and efficient power generation to its partnership with Elektron Energy to support the delivery of embedded electricity to businesses in Victoria Island.
According to Gummerus, collaboration between the companies had been central to the project, from system design through to eventual operation.
He said the approach was intended to make electricity supply to businesses more dependable and efficient.
Gummerus described VIPL as part of Elektron's broader effort to expand access to dependable electricity by bringing power generation closer to the locations where it is most needed.
He urged businesses across Victoria Island to register their interest in joining the network and becoming part of the new power infrastructure.
Technical showcase
The event also gave participants an opportunity to inspect the project's progress and receive technical briefings on the 40MW facility.
Attendees were taken through the technology behind the plant, including the Wärtsilä engine systems that will power the facility.
Members of the engineering team also engaged directly with stakeholders, providing updates on the project's development and preparations ahead of its planned inauguration.
With businesses in Lagos continuing to grapple with the cost and reliability challenges associated with electricity supply, the VIPL project is positioning itself as a dedicated alternative for commercial customers in one of the city's most important business districts.
If completed as scheduled, the inauguration in the first quarter of 2027 will mark the beginning of a new embedded power network aimed at providing Victoria Island businesses with more reliable and professionally managed electricity.