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

The Lagos State Electricity Regulatory Commission (LASERC) has granted an operational licence to Elektron Energy Development for its 40MW Victoria Island Power (VIPL) project in Lagos.

This was disclosed in a statement issued by LASERC on Wednesday.

The licence moves the project closer to its scheduled commercial operation in December 2026, when it is expected to provide dedicated electricity to businesses in Victoria Island.

What they are saying

LASERC Chief Executive Officer, Temitope George, said licensing developers such as Elektron aligns with the Commission’s mandate to promote a transparent and efficient electricity market in Lagos State. She said the approval supports the state’s energy security and industrial growth objectives.

• “Lagos State Electricity Regulatory Commission (LASERC) on Wednesday officially issued an operational license to Elektron Energy Development at the Commission’s conference room, marking a major milestone in the advancement of reliable energy infrastructure and sustainable economic development within the region,” the statement read in part.

Olakunle Falola, Executive Member for Licensing and Economic Regulation, said LASERC remained focused on fair pricing, consumer protection and sustainable competition.

Adekunle Olopade, Executive Member for Engineering and Standards, said Elektron had met the required safety, structural and operational standards.

Elektron CEO, Tola Talabi, said the company was ready to deploy reliable energy solutions and comply with regulatory standards.

Talabi thanked LASERC for the regulatory process and said the company remained committed to supporting local economic activity.

Project specifications and capacity

The Victoria Island Power project is a 40MW gas-fired embedded power plant being developed by Elektron Energy in partnership with Eko Electricity Distribution Company (EKEDC). The first phase is designed to scale to 70MW at full build-out.

• The plant uses Wärtsilä generation engines, which have been installed, while supporting infrastructure is at an advanced stage.
• A 12.6-kilometre underground feeder network is being integrated to distribute electricity to connected customers across Victoria Island.
• The project is expected to provide 24/7 dedicated electricity to banking, hospitality, telecommunications and multinational businesses.

Wärtsilä is the engineering, procurement and construction contractor and will provide long-term operations and maintenance support.

Commercial operations are scheduled to begin in December 2026.

Get up to speed

The licence comes as Lagos expands its framework for decentralised electricity supply and private-sector participation. In May, LASERC approved 14 electricity licences and permits covering off-grid and embedded generation, independent distribution, metering and mini-grid operations.

• Axxela Limited received approval for a 5.8MW off-grid project at Cadbury Nigeria in Agidingbi.
• Isolo Power Gen Limited received approval for a 9MW embedded generation project along the Apapa-Oshodi Expressway.
• Isolo Power Supply Limited was licensed as an Independent Electricity Distribution Network operator.
• Other approvals covered facilities operated by companies including Seven-Up, Nigerian Breweries, NBC, Crown Flour Mill, Nigerdock and Promasidor.

The approvals form part of Lagos State’s intrastate electricity market framework aimed at improving electricity supply across industrial and residential clusters.

40 applications under review

A Nairametrics review of LASERC documents showed about 40 additional applications undergoing approval across embedded generation, captive power and mini-grid categories.

The pipeline highlights growing investor interest in decentralised electricity projects across Lagos.

Notable pending projects include 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.

What you should know

The growth of embedded generation in Lagos reflects a broader increase in decentralised electricity projects across Nigeria. NERC issued 194 licences, permits and certifications in 2025, up from 168 in 2024.

• Mini-grid permits accounted for 64 approvals, followed by 43 Meter Service Providers, 30 Meter Asset Providers and 31 captive power projects.
• NERC also issued five embedded generation licences, seven electricity distribution network licences and six off-grid generation licences.
• The regulator issued its Mini-Grid Regulations 2026 in April to strengthen mini-grid development and electricity access in underserved communities.

The REA said it deployed more than 200 mini-grids in 2025, while the Federal Government plans to spend N100 billion in 2026 on hybrid mini-grids for government agencies.