Transgrid Enerco Limited and Decentralised Energy Limited have entered into a strategic collaboration to deploy integrated energy solutions aimed at improving electricity reliability in key commercial districts of Lagos, marking a push toward embedded generation to stabilise supply in Nigeria’s largest city.
The companies announced the agreement on April 1, 2026, confirming the signing of a Heads of Terms that outlines a framework for project development and execution. The initiative is backed by credit enhancement support from InfraCredit, which is expected to facilitate access to long-term local currency financing.
The partnership will focus initially on high-demand areas, including Marina and Lekki Phase 1, with plans to extend coverage to Ikoyi and Victoria Island over time. These districts represent some of Lagos’ most commercially active zones, where grid instability and service disruptions have imposed costs on businesses and residents.
Under the agreement, Transgrid and DEL will jointly develop embedded generation capacity integrated with existing distribution infrastructure. The model combines grid supply with decentralised power sources and supporting systems, aimed at reducing downtime and improving supply consistency.
To execute the plan, both parties intend to establish a special purpose vehicle (SPV) that will oversee project delivery, operations and long-term asset management. The structure is designed to streamline coordination and enable scalable deployment across multiple locations.
The move reflects growing interest in decentralised energy solutions as Nigeria’s power sector grapples with persistent supply constraints, ageing infrastructure and limited grid capacity. Embedded generation, which involves producing electricity close to the point of consumption, has emerged as a viable approach to bridging supply gaps in urban centres.
Transgrid, a core investor in Eko Electricity Distribution Plc, is positioning the initiative as part of a broader strategy to improve electricity delivery through targeted investments and operational reforms within its distribution network.
DEL, an investee company of the Anergi Group and Viathan Group, brings technical and operational expertise in decentralised energy systems. The company focuses on developing scalable infrastructure solutions designed to deliver reliable power to underserved and high-demand areas.
InfraCredit’s role in the project centres on de-risking investment and unlocking financing. By providing credit enhancement, the institution enables access to long-term funding from domestic institutional investors, a key constraint in infrastructure development across Nigeria’s power sector.
The collaboration underscores a shift toward market-based solutions to address electricity challenges, particularly in commercial hubs where demand is concentrated and service reliability is critical. Analysts say such partnerships could serve as a template for similar interventions across other distribution networks.
While financial details of the project were not disclosed, the parties indicated that the phased rollout would prioritise areas with the highest demand and most acute supply gaps, with expansion contingent on performance and funding availability.
The agreement signals a coordinated effort to strengthen system resilience and improve customer experience in Lagos, where unreliable grid supply has driven widespread reliance on self-generation. By integrating embedded capacity with existing infrastructure, the partners aim to reduce outages and enhance overall network stability.
The project’s implementation timeline was not specified, but the signing of the Heads of Terms sets the stage for subsequent financial close and construction phases, as stakeholders move to translate the framework into operational assets.