Businesses in Victoria Island, Lagos, could soon have a cheaper alternative to relying heavily on diesel generators, as Elektron Energy prepares to launch its 40MW embedded power project in the area.

The Victoria Island Power (VIPL) project is designed to provide dedicated electricity to businesses through a gas-fired power plant and a 12.6-kilometre underground distribution network.

The project is being developed in partnership with Eko Electricity Distribution Company (EKEDC) and operates under the regulatory framework of the Lagos State Electricity Regulatory Commission (LASERC).

LASERC granted the project its operating licence in September 2026, with commercial operations expected to begin in December.

One of the major selling points of the project is its potential to reduce the cost of electricity for businesses. Elektron Energy says customers already subscribed to about 13MW of capacity have recorded more than 40% savings in energy costs.

The project is also expected to help businesses reduce their dependence on diesel generators, which remain a major source of electricity for commercial operations in Nigeria and expose businesses to rising fuel, maintenance, and logistics costs.

The 40MW plant uses Wärtsilä generation engines, while the underground distribution network is designed to deliver power directly to connected customers across Victoria Island.

The project has attracted investment from institutions including the ARM-Harith Infrastructure Fund, Nigeria Sovereign Investment Authority, InfraCredit and the Bank of Industry.

Beyond Victoria Island, the project could serve as a model for expanding privately financed embedded power systems in other commercial areas. Elektron has also indicated that the network could eventually extend towards Ikoyi and Lekki.

For businesses, the bigger opportunity is not simply access to another source of electricity. It is the possibility of having more predictable power costs and less dependence on diesel.

If the project delivers on its reliability and cost targets, Victoria Island could become an example of how dedicated power infrastructure can help Nigerian businesses tackle one of their biggest operating challenges: the cost of electricity.