Last Tuesday, 11th July, marked the groundbreaking ceremony of Elektron Energy’s US$50 million 30MW gas-fired embedded Independent Power Plant (“IPP”) in Lagos. TEMPLARS are legal advisers to Elektron Energy.
The generated power from the embedded IPP will be supplied through Eko Electricity Distribution Plc’s distribution networks, to earmarked customers within Victoria Island, Lagos State.
The embedded IPP fits directly into Nigeria’s net-zero targets and energy transition plan, as it seeks to displace the dirtier diesel-fueled generators with cleaner gas-fired generation; the project has the potential to eradicate up to 1000 diesel generators within its coverage area, drastically reducing emissions and promoting a greener environment removing the equivalent of 9,000 tonnes of CO2 from the environment per month.
The CEO of Elektron Energy, Tola Talabi, commented, “We believe this project will mark a significant turning point in the Nigerian power sector. It will be the first time an embedded power plant is built in partnership with a distribution company. We expect to commission this project in 18 months.”
The project has ARM-Harith Infrastructure Investment Limited as a co-equity sponsor, Eko Electricity Distribution Plc as the connection/distribution service provider; the Debt Providers: FBNQuest, Bank of Industry Limited (BOI), InfraCredit; and the technical partners, Wärtsilä.
The TEMPLARS team that advised Elektron is led by Partner and Co-Head of Energy and Natural Resources Practice Dayo Okusami with support from Partner Desmond Ogba, Managing Counsel Obianuju Ifebunandu and Associates Temple Ezebuike and Olaotan Oyekan.