Lagos Energy Demand Outstrips Supply
5,000MW
Current Power Demand (2015)
10,000MW
Projected Power Demand (2020)
1,953MW
Power Supply (Available)
Lagos has a high demand for power that outweighs it’s supply due to
due to the rising
population of 3.2%
annually.
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population of 3.2%
annually.
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Inadequate supply of power generating companies (GENCO’s) as a result of their inability to generate enough capacity
Inadequate and low capacity transmission lines which are responsible for about 20% of energy lost during transmission.
Lagos state is still in need of over 8,000MW of electricity
Power supply
2,000MW
Power demand
10,000MW
Electricity consumption per capital
500MJ/inhabitant
Proportion of households with access to electricity
40%
Energy lost through transmission
20%
Recent improvements
The current IPPs have produced a combined capacity of about 48MW(2015)
The return on investment in
power ranges from 10% to 35%
power ranges from 10% to 35%
Investing in Generation
As population of Lagos State grows exponentially, energy demand is climbing to new heights. The existing IPPs have a combined capacity of about 48MW, a sharp contrast to the estimated 10,000MW requirement for the state.
Gas power plant
Average investment required per KWh is $65,000 - $80,000
ROI 30% - 35%
Payback period: 5 years
60% of the investment required would be spent during the construction period
Lagos offshore wind (Lekki axis) has potential for harvesting strong wind energy throughout the year (Average of 4.7m/s at 30m height) and the solar radiation, 4.8KWh/m2/day can also be harnessed for solar power generation
Renewables
Capacity: 400MW offshore wind power
Required Investment per KWh is $6,000 -$10,000
ROI 18% - 25%
Capacity: 125KVA solar plant
Average investment required:$1.5million -$2.Smillion
ROI 20% - 25% with payback period of 10 years
75% of the cost would be for turbines or solar panels
Investing in Transmission
The existing transmission lines are of low capacity and old and about 20% of energy is lost during transmission. This has implicit effect on power demand by Lagos residents.
The proposed unbundling and sale of Transmission Company of Nigeria (TCN) to interested private investors presents a huge opportunity for investment
Average investment required
$ 400 million - $500 million
$ 400 million - $500 million
ROl
25%-30%
25%-30%
Payback period
5 years
5 years
*52% of the investment required would be spent on
transmission cable accessories, fuse and insulators
transmission cable accessories, fuse and insulators
Investing in Distribution
The existing transformers are over loaded and not adequate with just only 15% being able to supply for its rural electrification programme over the years The distribution companies are servicing only 26% of its population
Average investment required
$ 150 million - $200 million
$ 150 million - $200 million
ROl
10%-20%
10%-20%
Payback period
5 years
5 years
*45% of the investment required would be spent on
transmission cable accessories, fuse and insulators
transmission cable accessories, fuse and insulators
