Technology group Wärtsilä will supply power generation equipment for a new 30-MW power plant being set up on Victoria Island in Lagos by Victoria Island Power Ltd. (VIPL), a Nigerian independent power producer (IPP). Wärtsilä, acting as the engineering, procurement, and construction lead for the project, also will operate and maintain the power plant for a period of five years.
Wärtsilä on May 22 said the project is the first of its kind for Nigeria, and is expected to serve as a model to enable similar, optimally sized and locally financed power projects in the country.
Victoria Island Power is a special purpose company incorporated by Lagos-based Elektron Energy for the gas-fired power plant. The facility is located within the Eko Electricity Distribution Co. (EKEDC) at that group’s NEPA Close Site, and has been developed through a collaboration of Elektron Energy and its local partners. The plant will provide power to EKEDC customers. VIPL also has secured power purchase agreements (PPAs) with individual customers on a service-based tariff program.
“Elektron has conceptualized, developed, and funded the IPP and has secured the implementation by engaging Wärtsilä to assume single-point responsibility for the major construction and operational aspects related to the eventual power generation facility,” said Deen Solebo, CFO and co-CEO for Electron Energy. “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.”
Solebo said, “I was very impressed by Wärtsilä’s state-of-the-art manufacturing facilities during my visit to the Sustainable Technology Hub in Vaasa, Finland in late Q3 2024 and am happy with the readiness of the engine-generator sets. In parallel, clearing and preparation activities at the NEPA Close Site are progressing well and are due for completion within Q2 2025, after which construction can start. Commissioning is expected 15 months thereafter and the operations and maintenance agreement is timed to commence prior to the new-build project reaching commercial operations date.”
The facility will feature three Wärtsilä 34SG gas-fired generator sets with related auxiliaries. It is configured to accommodate an extension with one additional engine-generator set at a later stage. The Wärtsilä modular power plant design concept will enable an expansion of the plant with minimal disruption to ongoing operations, according to the company.
“Wärtsilä’s core competence in the engine power plant and services aspects represents a unique combination of a global company with a local presence that provides developers and financiers the comfort to invest, and gives end-customers the confidence to sign up for PPAs with medium to long-term tenures,” said Marc Thiriet, the energy business director for Africa for Wärtsilä Energy. “The Wärtsilä solution is extensively adopted by industrial, utility and IPP customers worldwide and the excellent credentials and track record have been recognised as a great value proposition by lenders, insurance companies, and multi-lateral funding institutions.”
Solebo said, “Elektron is especially grateful to the invaluable contributions of its institutional investors and funding partners who have made this project possible including ARM Harith Infrastructure Fund LP, Nigerian Sovereign Investment Authority, InfraCredit, Bank of Industry, FBN Quest, and Stanbic Infrastructure Partners.”
—Darrell Proctor is a senior editor for POWER.
