Transgrid Enerco Limited and Decentralised Energy Limited have sealed a strategic collaboration to deploy integrated energy solutions across Lagos.
The move backed by InfraCredit’s credit enhancement facility, is aimed at expanding generation capacity while reducing power outages in critical commercial districts.
The initiative, which will initially cover Marina and Lekki Phase 1 before extending to Ikoyi and Victoria Island, is designed to improve electricity reliability for businesses and residents through a hybrid model that combines grid supply with embedded generation and supporting infrastructure.
The companies, in an official statement, confirmed that the partnership will “jointly develop and deploy integrated energy solutions in Lagos State,” adding that the effort is targeted at “expanding generation capacity, reducing service downtime, and improving electricity supply reliability across key areas in Lagos State.”
Central to the collaboration is a unified deployment approach that leverages the companies’ technical expertise, operational capacity, and financial resources to accelerate the rollout of embedded power solutions in underserved clusters.
The approach is expected to deliver measurable improvements in service uptime, particularly in high-density economic zones where power disruptions have historically constrained productivity.
To drive execution, both parties will establish a Special Purpose Vehicle responsible for project development, delivery, and long-term operations.
According to the statement, the SPV structure “will enable focused execution, efficient coordination, and scalable implementation across identified locations,” positioning the project for phased expansion across Lagos.
A critical pillar of the deal is the role of InfraCredit, whose credit enhancement framework is unlocking long-term local currency financing for the project.
By de-risking investments and mobilising domestic institutional capital, InfraCredit is expected to strengthen bankability and accelerate deployment across the power value chain.
The statement noted that InfraCredit, “through its credit enhancement solutions, enabling access to long-term local currency financing across the power value chain, is contributing to the success of the project by creating access to capital.”
It added that the institution’s model continues to catalyse “market-based infrastructure financing in Nigeria,” while establishing a scalable and replicable template for future energy investments.
According to the statement, the agreement has progressed to the Heads of Terms stage, setting the foundation for full project implementation and signalling the parties’ commitment to improving electricity supply for Lagosians.
Transgrid, a core investor in Eko Electricity Distribution Plc, is spearheading the initiative as part of its broader strategy to enhance electricity delivery through disciplined investment and operational performance.
Its involvement underscores a growing shift among distribution-linked investors towards embedded generation as a solution to persistent grid inefficiencies.
For its part, Decentralised Energy Limited brings a specialised focus on distributed energy infrastructure, combining development and operational expertise with access to strategic investors.
The company’s model, spanning independent power plants, gas infrastructure, and distribution networks, positions it to scale reliable power delivery to commercial, industrial, and residential users.
Both firms said the collaboration reflects “a shared commitment to delivering measurable improvements in electricity performance while supporting long-term system stability and customer confidence across the Lagos network.”
With Lagos serving as Nigeria’s commercial hub, the success of the Transgrid-DEL partnership is expected to have wider implications for business continuity, investor confidence, and the push towards sustainable, market-driven power solutions in the country.
