Wärtsilä will supply power generation equipment for the plant being set up on Victoria Island in Lagos by a Nigerian IPP.
Victoria Island Power (VIPL), a company established by Elektron Energy, has contracted Wärtsilä for the engineering, procurement, and construction of the facility. Wärtsilä will also oversee the plant’s operations and maintenance for five years. The plant, located at the NEPA Close Site, will connect to the Eko Electricity Distribution Company (EKEDC) to enhance power reliability for local consumers.
The facility will operate on natural gas and use three Wärtsilä 34SG gas engine-generator sets with supporting equipment. Its modular design allows for future expansion by adding another engine-generator set with minimal disruption. Elektron Energy’s co-CEO and CFO, Deen Solebo, stated: “Elektron has conceptualised, 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.” He added: “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.”
Site preparation at NEPA Close is advancing and expected to conclude in the second quarter of 2025, with construction to follow. Commissioning is planned 15 months later, and the operations and maintenance agreement will start before the plant reaches its commercial operations date. Solebo noted: “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.”
VIPL has secured power purchase agreements with individual customers, adopting a service-based tariff model. The project is supported by investors and funding partners, including ARM Harith Infrastructure Fund, Nigerian Sovereign Investment Authority, InfraCredit, Bank of Industry, FBN Quest, and Stanbic Infrastructure Partners.
This initiative aligns with efforts to improve Nigeria’s power infrastructure. Separately, in April 2025, Wärtsilä announced it would supply a 64MW/128 megawatt-hour energy storage system for a solar battery hybrid project in Australia, demonstrating its global expertise in energy solutions.
