Renewable energy developer Konexa, with funding from Climate Fund Managers, will work with Nigerian electricity distributor Kaduna Electricity Distribution Company (KAEDCO), to roll out renewable power in Nigeria.
The project will consist of the development and construction of a 2.5 megawatts solar photovoltaic plant with the potential to include a storage component; construction of eight solar mini-grids and associated distribution works; roll out of solar home systems, deployment of smart metering infrastructure; and an integrated information and operations technology platform, grid network upgrades, as well as securing energy supply from nearby existing renewable generation assets.
“We are proud to be partnering with Climate Fund Managers on this innovative project that has the potential to catalyze large scale private sector investment to make the distribution sector in Nigeria financially viable and sustainable,” said Pradeep Pursnani, CEO of Konexa.
An investment of approximately $50 million will enable Konexa to serve the entire range of customers in its sub-franchise area – from large commercial and industrial clients that cannot rely on grid power to small rural customers that are out of reach of the grid.
As a result of the national energy deficit, Nigeria has a $15 billion off-grid market that is mostly based on diesel and petrol generators.
“This project can have a transformational impact on the overall power sector in the country and the lives of many Nigerians that need to access affordable and reliable power for their homes and businesses. I am hugely grateful to the Konexa team and our partners Olaniwun Ajayi and Zutari who have been working tirelessly on this initiative for almost two years to be Nigeria’s first distribution franchise approved by the regulator.” concluded Pursani.