Isolo Residents to Enjoy Improved Power Supply as Isolo Power Gen Secures LASERC Licence

Isolo Power Gen Limited has secured regulatory approval to develop a 9MW embedded power generation project in Lagos State following the latest licensing round conducted by the Lagos State Electricity Regulatory Commission.

The company emerged as one of 14 operators granted licences by the commission and was the only operator approved under the embedded generation category for a 9MW facility in the current round of approvals.

The project is expected to improve electricity supply within Isolo and adjoining communities through a decentralised distribution framework aimed at enhancing power reliability across residential and industrial corridors in the area.

According to regulatory documents reviewed by industry stakeholders, the project will be located along 110/114 Apapa-Oshodi Expressway in Isolo, Lagos.

The facility will operate under an embedded generation model, allowing electricity to be generated and supplied directly into a local distribution network to improve efficiency and reduce dependence on the national grid.

If fully completed and integrated into the local network, the project could significantly improve electricity availability for businesses and households within the host communities, with expectations of more stable and extended daily power supply.

Industry experts noted that embedded generation projects are increasingly gaining attention in Lagos because of rising demand for reliable electricity and the need to address longstanding supply challenges within industrial and commercial hubs.

The project is designed to operate at a 9MW generation capacity and supply electricity directly to Isolo and surrounding areas through a localised distribution system.

Ownership structure for the company includes Westfield Assets Limited, Camara Exim Limited, Chellarams Plc, and Suresh Chellaram.

The approval forms part of broader efforts by Lagos State authorities to decentralise electricity supply and encourage private sector participation within the power sector following constitutional reforms granting states greater authority over electricity markets.

A review of LASERC records showed that more than 40 additional power applications are currently undergoing approval processes across embedded generation, captive power, and mini-grid categories.

Among the notable pending embedded generation projects are Alaro Power Free Zone Enterprise’s proposed 10MW project in Epe, Takwa Bay Green Power Free Zone Enterprise’s planned 24MW project in Apapa, Geogrid Lightech Limited’s proposed 30MW facility in Agidingbi, and Irele Energy LFZ Enterprise’s planned 50MW project in Ibeju-Lekki.

The growing number of applications highlights increasing investor interest in decentralised electricity solutions, particularly within Lagos industrial clusters where businesses continue to face high operating costs linked to unreliable grid supply.

Analysts stated that embedded generation projects could help reduce pressure on the national grid while improving electricity reliability for strategic economic zones and densely populated communities.

The Lagos State Electricity Regulatory Commission was established following the enactment of the Lagos Electricity Bill 2024, which replaced the 2018 power sector reform framework and created an independent electricity market for the state.

In March 2026, Governor Babajide Sanwo-Olu inaugurated the board of LASERC, formally activating the commission’s regulatory oversight responsibilities covering electricity generation, distribution, licensing, and tariff administration within the state.

The development followed constitutional electricity reforms introduced in 2023, which granted states authority to regulate and operate independent electricity markets outside the federal framework.

The reforms also paved the way for the establishment of state electricity commissions and related institutions aimed at promoting investment and competition within the sector.

Industry stakeholders said Lagos State’s electricity market reforms could encourage greater private investment in generation infrastructure, mini-grids, renewable energy systems, and captive power projects.

Experts also noted that decentralised power systems are increasingly viewed as critical solutions to Nigeria’s long-standing electricity challenges, especially in urban and industrial centres with high energy demand.

The latest licensing approvals by LASERC are expected to strengthen ongoing efforts to expand electricity access, improve power reliability, and support economic productivity across Lagos State.

Businesses within industrial corridors have repeatedly cited unstable electricity supply as one of the major constraints affecting operational efficiency and production costs.