Elektron Energy is preparing to switch on a 40-megawatt power plant in Victoria Island, giving businesses in one of Lagos’s busiest commercial districts a dedicated alternative to diesel generators and an overstretched national grid.
The developer opened the site to customers and business leaders on Thursday, offering technical briefings on the plant and its Wärtsilä engines ahead of a full commissioning. The Victoria Island Power project pairs Elektron’s generation capacity with distribution infrastructure operated alongside Eko Electricity Distribution Co., under a license from the Lagos State Electricity Regulatory Commission.
The project is backed by ARM-Harith Infrastructure Fund, the Nigeria Sovereign Investment Authority, InfraCredit and the Bank of Industry, a lineup that signals continued appetite among Nigerian institutional investors for embedded power deals, even as the broader economy grapples with currency volatility and high borrowing costs.
Embedded power, electricity generated and distributed locally to a specific cluster of customers, bypassing the constraints of the national grid, has become one of the more active corners of Nigeria’s energy sector as businesses tire of the costs of self-generation.
