Elektron Energy Secures LASERC Licence as 40MW Victoria Island Plant Targets December 2026

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Elektron Energy Development Strategies Ltd. has secured a generation licence from the Lagos State Electricity Regulatory Commission (LASERC), giving it the regulatory backing to generate electricity in Lagos State.

The company says the approval deepens private-sector participation in Lagos' power market. Its flagship project, Victoria Island Power Ltd. (VIPL), is a 40 megawatt gas-fired embedded plant scheduled to begin commercial operations in December 2026.

What the licence covers

Elektron Energy chief executive Tola Talabi announced the licence in a statement on Wednesday in Lagos. He said the approval reflected LASERC's confidence in the company's technical, operational and regulatory capabilities.

"This licence represents an important step forward for Elektron and for the businesses and communities we serve," Talabi said.

He said the licence aligns with Lagos State's push to decentralise electricity supply, attract private investment and reduce dependence on the national grid. The company, he added, will keep developing purpose-built power infrastructure for commercial and industrial users.

Victoria Island project details

VIPL is being developed in partnership with Eko Power, formerly Eko Electricity Distribution Company (EKEDC). Phase 1 carries an initial generation capacity of 40MW and is designed to expand to 70MW as demand grows.

Target customers include banking headquarters, hotels, telecommunications facilities and multinational companies in Victoria Island. Once completed, the plant is expected to supply electricity around the clock through a 12.6 kilometre underground feeder network.

Talabi said several construction milestones have already been achieved, including the installation of Wärtsilä generation engines, with other supporting infrastructure at an advanced stage.

Elektron Energy says it has more than 14 years of experience developing and operating embedded power infrastructure in Nigeria. Its existing portfolio includes the 10.6MW Alausa Independent Power Project, which runs a 15 kilometre distribution network and has supplied Lagos State Government facilities since 2013.

Energy theft probe on Ikorodu-Sagamu corridor

The licence comes as the Federal Government has ordered a formal investigation into energy theft along the 132kV Ikorodu to Sagamu industrial corridor in Lagos, where power losses are estimated at roughly N120 billion every year.

Minister of Power Joseph Tegbe disclosed at a high-level stakeholder meeting in Lagos that unaccounted electricity losses along the corridor amount to about 100 megawatts annually.

What it means for businesses

For Victoria Island businesses, VIPL offers a second supply option that could cut spending on diesel generators and other backup systems. That matters for operating costs in a city where grid supply remains unreliable, though the plant will not come on stream until December 2026.

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