Konexa secures $18m investment to launch renewable electricity trading platform in Nigeria
UK-based integrated energy development and investment platform, Konexa, has marked a significant milestone by achieving financial close on an $18 million investment.
This investment is aimed at establishing a pioneering private renewable electricity trading platform, with Nigeria Breweries PLC set to be the inaugural client connected to the grid.
The investment comes from climate-centric blended finance fund manager, Climate Fund Managers (CFM), and Microsoft’s Climate Innovation Fund. Nigeria Breweries PLC, with a goal to supply 100 percent green energy to two of its breweries, stands to benefit from this endeavor.
Konexa’s achievement is further highlighted by the fact that it is among the select few companies granted a private energy trading license in Nigeria.
This license, granted by the Nigerian Electricity Regulatory Commission (NERC) in June 2022, empowers Konexa to source renewable power from Independent Power Producers (IPPs), transmit it across the national grid, and offer it to private clients at competitive rates.
Facilitated through a newly established electricity trading platform, this initiative aims to enhance energy reliability and sustainability for off-takers, while contributing to the resilience and efficiency of the national grid.
The investment will facilitate the transmission of renewable energy from the 30 MW Gurara Hydro Power Plant in Kaduna State, Northern Nigeria, to two of Nigerian Breweries’ facilities in Kaduna.
These breweries, currently reliant on fossil fuels, will transition to receiving 100 percent of their electricity from the hydro energy source, operated by North South Power Company Limited.
The financial support from CFM and Microsoft’s Climate Innovation Fund will enable the construction of necessary infrastructure and the deployment of a Battery Energy Storage Solution (BESS) to connect Nigerian Breweries Plc to the grid supplied by renewable energy from the Gurara Plant.
This project is expected to have a significant environmental impact, displacing 8,104 tons of CO2 equivalent emissions annually, which is akin to removing 1,800 cars from the roads.
CFM’s investment, facilitated through its Climate Investor One (CIO) fund, emphasizes the European Union’s commitment to renewable energy infrastructure in emerging markets.
The funding was provided by the European Commission, with CFM providing technical, financial, and Environmental, Social, and Governance (ESG) support to expedite the project’s development.
Pradeep Pursnani, CEO of Konexa, expressed gratitude for the support received, highlighting CFM’s expertise in renewable energy infrastructure development and Microsoft’s alignment with innovation.
He emphasised the platform’s role in integrating sustainable energy sources into the grid and aiding the decarbonization of the commercial and industrial sector.
Darron Johnson, Regional Head of Investments Africa at CFM, underscored the importance of Konexa’s trading platform in bridging infrastructure gaps and strengthening the sustainability of the national grid.
Additionally, Konexa’s community development program extends its impact beyond the commercial realm as two villages in the Kudana region have been connected to electricity, with initiatives aimed at improving livelihoods and diversifying income streams.
CFM’s previous investment in Konexa’s projects, such as transitioning drone company Zipline’s operations to solar power, further demonstrates the collaborative efforts towards sustainable development facilitated by innovative financing mechanisms.
