LASERC grants licence to Elektron’s 40MW Victoria Island power project

The Lagos State Electricity Regulatory Commission (LASERC) has granted Elektron Energy Development an operational licence for its 40MW Victoria Island Power (VIPL) project. This development, announced by LASERC on Wednesday, brings the project closer to its target commercial operation date of December 2026, when it aims to supply dedicated electricity to businesses in Victoria Island.

LASERC's CEO, Temitope George, emphasized that approving developers like Elektron aligns with the Commission's goal of fostering a transparent and efficient electricity market in Lagos State. This move supports the state's energy security and industrial growth objectives. Olakunle Falola, Executive Member for Licensing and Economic Regulation at LASERC, affirmed that the Commission remains committed to fair pricing, consumer protection, and sustainable competition.

Elektron CEO, Tola Talabi, stated that the company is prepared to deliver reliable energy solutions and adhere to all regulatory standards, expressing gratitude to LASERC for the straightforward regulatory process and highlighting the company's dedication to supporting local economic activity. The Victoria Island Power project, a collaboration between Elektron Energy and Eko Electricity Distribution Company (EKEDC), is a 40MW gas-fired embedded power plant with plans to expand to 70MW upon completion.

The project is being engineered, procured, and constructed by Wärtsilä, who will also manage long-term operations and maintenance. The licensing of Elektron's project comes as Lagos State broadens its framework for decentralized electricity supply and private-sector involvement. In May, LASERC approved 14 licenses and permits for off-grid and embedded generation, independent distribution, metering, and mini-grid operations, as part of the state's intrastate electricity market framework aimed at enhancing electricity supply across industrial and residential areas.

LASERC currently has about 40 other applications in various stages of approval, including projects like Alaro Power Free Zone Enterprise's 10MW project in Epe, Takwa Bay Green Power Free Zone Enterprise's 24MW project in Apapa, Geogrid Lightech's 30MW project in Agidingbi, and Irele Energy LFZ Enterprise's 50MW project in Ibeju-Lekki.

This surge in decentralized electricity projects in Lagos reflects a broader trend of decentralization in Nigeria, with the National Electricity Regulatory Commission (NERC) issuing 194 licenses and certifications in 2025, up from 168 in 2024. Additionally, the Regulatory Enforcement Authority (REA) deployed over 200 mini-grids in 2025, and the Federal Government plans to invest N100 billion in 2026 on hybrid mini-grids for government agencies.