Elektron Energy Development Strategies Limited has secured an electricity generation licence from the Lagos State Electricity Regulatory Commission (LASERC), paving the way for the company to generate and supply electricity within the state.

The licence comes as the company advances its flagship Victoria Island Power (VIPL) project, a 40-megawatt (MW) gas-fired embedded power plant scheduled to commence commercial operations in December 2026.

Developed in partnership with Eko Power, formerly Eko Electricity Distribution Company (EKEDC), the Phase One project is designed to serve the Victoria Island business hub.

The plant, according to the company, can be expanded to 70MW under a full build-out plan.

According to the company, the project is progressing towards its commercial operation date, with Wärtsilä generation engines already installed and supporting infrastructure at an advanced stage of construction.

Upon completion, VIPL is expected to provide dedicated electricity to connected customers through a 12.6-kilometre underground feeder network.

Chief Executive Officer of Elektron Energy, Tola Talabi, said the licence provided the regulatory foundation for the company to expand its power infrastructure in Lagos.

“This licence represents an important step forward for Elektron and for the businesses and communities we serve. It affirms Lagos State’s confidence in our platform and gives us the regulatory foundation to continue delivering the kind of dependable, purpose-built power infrastructure that Nigeria’s commercial and industrial ecosystems increasingly require. Reliable, professionally-managed power is central to how Lagos will grow. We are proud to play a role in building it.” Talabi

According to Talabi, Elektron has operated embedded power infrastructure in Nigeria for more than 14 years, with existing projects including the 10.6MW Alausa Independent Power Project and a 7MW installation supplying Rack Centre, a Tier III data centre in Ikeja.

The Alausa project, which has a 15-kilometre distribution network, has supplied Lagos State government facilities since 2013.

The company also has embedded power projects under development at Sangrosse, Ogba, Ibeju-Lekki and Tokarawa, with proposed capacities of 40MW, 40MW, 40MW and 20MW respectively.

VIPL is backed by ARM-Harith Infrastructure Fund, InfraCredit, the Nigeria Sovereign Investment Authority and the Bank of Industry. Wärtsilä is the engineering, procurement and construction contractor as well as the long-term operations and maintenance partner.

The issuance of the generation licence gives Elektron regulatory approval to participate in the Lagos electricity market as the state implements reforms aimed at decentralising electricity supply and attracting private investment into power generation and distribution.