Technology company Wärtsilä has been selected to supply and maintain a new 30MW power plant on Victoria Island in Lagos, Nigeria, for a local independent power producer (IPP).

The project, which is a first-of-its-kind in Nigeria, is expected to serve as a model for future power projects in the country. It is being developed through a collaboration between Lagos-based Elektron Energy and its local partners.

Victoria Island Power (VIPL), a special-purpose company incorporated by Elektron Energy, has entrusted Wärtsilä with the engineering, procurement, and construction (EPC) of the project.

Wärtsilä will also manage and maintain the power plant for a duration of five years on behalf of the client.

Elektron Energy co-CEO and CFO Deen Solebo said: “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.

“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.”

The new power plant will run on natural gas and will be integrated with the Eko Electricity Distribution Company (EKEDC) at their NEPA Close Site. It is expected to improve the availability and reliability of the power supply to consumers served by EKEDC.

The power plant will comprise three Wärtsilä 34SG gas engine-generator sets with related auxiliaries. It is designed to be scalable, allowing for the addition of one more engine-generator set in the future.

This modular design concept by Wärtsilä enables cost-effective expansion with minimal disruption to ongoing operations.

Solebo added: “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.

“Commissioning is expected 15 months thereafter and the operations and maintenance agreement is timed to commence before the new build project reaching commercial operations date (COD).”

VIPL has secured power purchase agreements (PPAs) with individual customers, adopting a service-based tariff philosophy.

The project is backed by institutional investors and funding partners, including ARM Harith Infrastructure Fund, Nigerian Sovereign Investment Authority, InfraCredit, Bank of Industry, FBN Quest, and Stanbic Infrastructure Partners.

In April 2025, Wärtsilä announced that it will supply a 64MW/128 megawatt hour (MWh) energy storage system for Octopus Australia’s Fulham solar battery hybrid project.