Uche Cecil Izuora
Decentralization of power sector has pushed Lagos State to begin acceleration of electricity generation and distribution to efficiently deliver energy to consumers in the State.
The Lagos State Electricity Regulatory Commission (LASERC) which drives the initiative has officially issued Elektron Energy Development Strategies Limited an electricity generation licence, authorising the company to generate electricity within Lagos State.
The landmark authorisation strengthens Elektron’s role in shaping Lagos State’s decentralised electricity market as flagship Victoria Island Power project moves closer to commercial operation.
The licence reflects LASERC’s confidence in Elektron’s technical, operational, and regulatory capabilities to contribute meaningfully to power generation within the state.
It also aligns with Lagos State’s broader ambition to decentralise electricity delivery, encourage private-sector investment, and expand access to reliable, affordable power across its commercial ecosystems, an ambition strengthened by ongoing reforms in the Nigerian power sector.
Commenting on the milestone, Tola Talabi, Chief Executive Officer of Elektron Energy, said:
“This licence represents an important step forward for Elektron and for the businesses and communities we serve. It affirms Lagos State’s confidence in our platform and gives us the regulatory foundation to continue delivering the kind of dependable, purpose-built power infrastructure that Nigeria’s commercial and industrial ecosystems increasingly require. Reliable, professionally-managed power is central to how Lagos will grow. We are proud to play a role in building it.”
The licence issuance coincides with a defining phase for Elektron’s flagship project, Victoria Island Power (VIPL), which remains on track for its scheduled commercial operation date in December 2026.
Developed by Elektron in partnership with Eko Power (formerly EKEDC), VIPL Phase 1 is a 40 MW gas-fired embedded power plant, scalable to an eventual 70 MW at full build-out, purpose-built to serve Victoria Island’s most operationally demanding businesses, including banking headquarters, hospitality groups, telecommunications infrastructure, and multinational offices.
Several key construction milestones have already been achieved. The project is progressing in line with this timeline, and several critical milestones have already been achieved. The plant’s Wärtsilä generation engines have been installed while critical supporting infrastructure are at an advanced stage of construction.
Once operational, VIPL will deliver 24/7 dedicated electricity to connected customers through 12.6 kilometres of underground feeder network.
Elektron Energy has been developing and operating embedded power infrastructure across Nigeria for over 14 years. Its existing portfolio includes the Alausa Independent Power Project, a 10.6 MW gas-fired plant with a 15-kilometre distribution network that has powered Lagos State government facilities since 2013, and a 7 MW installation supplying Rack Centre, a Tier III data centre in Ikeja that forms part of Nigeria’s critical digital infrastructure.
Beyond VIPL, Elektron’s development pipeline includes further embedded power projects at Sangrosse (40 MW), Ogba (40 MW), Ibeju-Lekki (40 MW), and Tokarawa (20 MW).
VIPL is backed by a consortium of institutional investors including ARM-Harith Infrastructure Fund, InfraCredit, the Nigeria Sovereign Investment Authority, and Bank of Industry, with Wärtsilä serving as the project’s EPC contractor and long-term operations and maintenance partner.
The generation licence positions Elektron to play an active role in shaping the future of the Lagos electricity market.
As the state advances its strategy to decentralise power delivery and reduce over-reliance on the national grid, Elektron remains committed to delivering the resilient, purpose-built infrastructure that Nigeria’s most productive commercial economies require.