Lagos State government on Sunday signed a Power Purchase Agreement, PPA, with three electricity generating companies to boost energy supply in the state.
The signing agreement was witnessed by Lagos State governor, Babajide Sanwo-Olu at the Lagos House, Marina along with the Commissioner for Energy and Mineral Resources, Abiodun Ogunleye signing for the state government.
Two of the companies, Mainland Power Limited and Akute Independent Power Plant had been operating in the state, while Fenchurch was a new partner. They were three out of the four Independent Power Plants, IPP, currently operating in the state.
Speaking after the signing ceremony, Sanwo-Olu urged all the partners to keep to the sanctity of the agreements, exhibit commitment and uphold professionalism to make the projects viable and improve the lives of residents.
“This agreement is about the people and how easily we can solve problems. Let’s keep promises from both sides. When people benefit, it makes life easier. This is the beginning of reforms we are seeing in the energy sector,” the governor said.
The Commissioner for Energy and Mineral Resources, Abiodun Ogunleye described the agreement as a move to increase power generation and revitalize dormant assets to provide renewal power supply to Lagosians.
He added that the three companies already have a combined generating capacity of 60MW and that with the agreement, they can scale up to over 200 to 400MW in two or three years without draining the treasury but competing in the market place to provide sustainable energy to our citizens.