Invitation for Expression of Interest (EoI) for Independent Power Producers (IPPs) and Captive Power Plant Owners with Excess Generation Capacity to Join the Lagos State Electricity Market at the Lagos State Ministry of Energy and Mineral Resources (MEMR)

Posted by Kordinichi on Tue 25th Feb, 2025 - nigeriantenders.com

The Lagos State Ministry of Energy and Mineral Resources (MEMR) in conjunction with the Office of Public-Private Partnership (OPPP) invites qualified and experienced Independent Power Producers (IPPs) operating within Lagos State and its environs to express their interest in participating in the Lagos State Electricity Market. Interested bidders should possess relevant qualifications and experience.

The Lagos State Ministry of Energy and Mineral Resources (MEMR) in conjunction with the Office of Public-Private Partnership (OPPP) invites qualified and experienced bidders for:

Title: Invitation for Expression of Interest (EoI) for Independent Power Producers (IPPs) and Captive Power Plant Owners with Excess Generation Capacity to Join the Lagos State Electricity Market

Location:   Lagos

Background

Lagos the most populous city in Nigeria and the African continent has a population of over 20 million, making it the largest metropolitan area in Africa as well as the financial center and the economic hub of Nigeria. As a result, of the large population, the State faces pressing energy challenges due to its rapid urbanization and growth in economic activities.
Therefore, there is an urgent need for sustainable alternatives to the supply of energy from the national grid which is inadequate for the entire country. The total energy needs for the State is more than 6GW of electricity while what is being supplied currently by the existing discos is less than 2GW at peak period.
The Lagos State Ministry of Energy and Mineral Resources (MEMR) in conjunction with the Office of Public-Private Partnership (OPPP) invites qualified and experienced Independent Power Producers (IPPs) operating within Lagos State and its environs to express their interest in participating in the Lagos State Electricity Market.
This initiative seeks to identify IPPs and Power Plants with excess already installed generation capacity. These surplus - capacities will be captured, optimized, and integrated into the Lagos State electricity grid to enhance accessibility, affordability, and reliability for residents and businesses on the Lagos Grid.
This effort is in alignment with the Lagos State Electricity Law and contributes to the establishment of a secure, competitive, and integrated energy system that reduces waste, optimizes energy resources, and promotes sustainable economic growth.

Purpose of the EOΙ

The purpose of this EOI is to engage IPPs and Captive Power Plants with excess and unused installed power generation capacity from operational plants. Lagos State seeks to purchase or facilitate the transmission of this energy into the Lagos State electricity grid, supporting its objective of increasing available power supply and advancing energy efficiency.
By connecting the unused generation capacity, Lagos State will quickly create an energy marketplace that fosters collaboration between public and private entities, spurs innovation, and drives investment in sustainable electricity solutions.

Objectives of the Lagos State Electricity Market
By this initiative, the Lagos State Electricity Market aims to:

Utilize Excess Capacity Effectively: Capture and distribute unused energy from IPPs and Captive Power Plants to bridge power supply gaps and reduce waste.
Enhance Electricity Access and Reliability: Increase the stability of power supply by diversifying energy sources and integrating underutilized IPPs' and Captive Power Plants' contributions.
Encourage Investment in Sustainable Solutions: Promote efficient energy utilization, optimize current generation assets, and reduce reliance on new fossil-fuel-driven projects.
Build a Resilient Energy Infrastructure: Expand and fortify energy networks by leveraging decentralized power generation systems with multiple supply points.

Scope of Services
Qualified IPPs and Captive Power Plants are invited to participate in the Lagos State Electricity Market in the following areas:

Excess Energy Sales: Provide detailed documentation of surplus electricity generation capacities, including their source (e.g., gas-fired, solar, hydro, wind, or hybrid plants) and technical specifications.
Grid Integration and Management: Collaborate with the state's Independent System Operators (ISOs) for synchronized grid management, and efficient transmission of surplus energy, including frequency control, load balancing. and system stability.

Requirements from Interested Parties

The bidder may consist of a single company or a consortium of companies with the technical, financial, legal, and other specialist expertise required to successfully deliver on the project.
In the case of a consortium, the consortium members must jointly submit the information required herein paragraph 3.2. Consortiums must also clearly identify a member company as the Lead Company as well as identify the specialized expertise/fields of its membership.
The Lead Company will have the primary responsibility for liaising with the Project Delivery Team and for managing the consortium's performance of the Project.

Pre-Qualification

To be pre-qualified, prospective bidders should submit an Expression of Interest detailing the following information as a basis for prequalification.
The prospective bidder must register with the Lagos State Public Procurement Agency on lagosppa.gov.ng through which documents will be submitted.

Legal Status and Profile

Full name and contact person, postal & contact address, telephone, and e-mail addresses of each corporate entity.
Company profile including management staff professional certifications/licenses to practice and CVs..
Company registration documents including Certificate of Incorporation, certified true copies of Memorandum and Articles of Association, CAC status report, particulars of directors, and allotment of shares (CAC 7 and CAC 2) or the equivalent.
Ownership structure including name(s) of shareholders and percentage shareholdings.
Evidence of registration with Lagos State Public Procurement Agency.
Evidence of corporate Tax Clearance Certificate of the company/consortium issued by the Federal Inland Revenue Service (FIRS) and two personal income tax certificates of at least two directors of the company for the last Three (3) years (2021,2022 & 2023) issued by the Lagos State Internal Revenue Service (LIRS).
Evidence of filing up-to-date annual returns with the Corporate Affairs Commission indicating the active status of the company/consortium.
Affidavit disclosing whether or not any officer or employee of the relevant committee of the LASG, MEMR, OPPP or its agencies is a former or present director, shareholder, or has any pecuniary interest in the bidder's company/consortium, and to confirm that all information presented in the bid is true and correct in all particular circumstances.
All foreign equivalent documentation must be translated into English Language and certified by a competent authority in English Language.

Technical Experience

The bidder must have a generating asset with Excess capacity. The bidder would indicate the capacity that is installed and the excess capacity available for the market
The bidder should enclose evidence of the following.
- Existing GPA
- O&M agreement (if any)
- Licenses obtained for the plant operation till date, including EIAs obtained.
- LTSA (if any)
- Existing Emergency Preparedness Plan
Connection Plans
Production sustainability plans
Availability of appropriate skills with relevant qualifications.

Financial Capability

Provide the most recent 3-year audited Financial Statements (2021,202282023) and the latest Management Accounts (January to December 2024).
Evidence of PAYE remittance for Nigerian consortia/firms
Evidence of payment of Expression of Interest fee of #250,000 (Two hundred and fifty thousand Naira) using Agency Code 75000, Revenue Code 33445 at any commercial bank collecting revenue on behalf of LASG. Payments are to be made using the company/consortium Payer ID issued by LIRS
Evidence of financial capability/ availability of financial resources/access to funding from a reputable bank.

Application Closing Date
Friday, 7th March, 2025 (17:00 hours West African Time (GMT+)).

Submission of BidsResponse to the Expression of Interest (EOI) shall be submitted electronically on the e-procurement platform of the Lagos State Public Procurement Agency (lagosppa.gov.ng) no later than 17:00 hours West African Time (GMT+) Friday 7th March, 2025. This is only possible after registration on the platform.

Note

Please note that all participants shall be responsible for their costs and expenses for the submission of their EOI.
Also note that this notice for EOI is only to shortlist qualified candidates and shall not be construed as a contract, nor an intent. promise, or commitment to proceed with parties who respond, and that submission of documents shall not entitle any of the interested parties to any claim against LASG/MEMR and or OPPP by such parties that respond to the EOI invitation.
For further enquiries, kindly contact email: info@ppplagos.ng OR call: +234 807 051 0513.