The Climate Fund Managers (CFM) and Microsoft are set to invest in clean energy in Nigeria. The two have partnered together to invest a sum of US $18M in Konexa, a renewable energy trader based in London, UK.
Konexa is one of the few companies to have been awarded a private energy trading license in Nigeria. The license, which was awarded by the Nigerian Electricity Regulatory Commission (NERC) in June 2022 allows Konexa to source renewable power from IPPs, transport it across the national grid and sell it to private clients at a competitive price. Transactions will be facilitated via a new electricity trading platform, enhancing energy reliability and sustainability for off-takers and contributing to the overall resilience and efficiency of the national grid.
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Energy solutions
The investment will help to establish the trading platform and facilitate the transmission of renewable energy from the 30 MW Gurara Hydro Power Plant in Kaduna State, Northern Nigeria, to two of Nigerian Breweries’ Kaduna facilities.
Konexa will also focus on providing renewable energy solutions particularly in rural areas such as Chikaji Gwari and Chikaji Tsakiya. Their aim is to help address the country’s reliance on fossil fuel-powered generators, which contribute to pollution and carbon emissions. Providing electricity connections and solar equipment to these areas not only improves quality of life but also opens up opportunities for economic growth, particularly in sectors like small-scale farming.
“We are honoured to have been awarded one of the first trading licenses for renewable energy in Nigeria and to be launching our trading platform with the invaluable support of CFM and Microsoft’s Climate Innovation Fund” said Pradeep Pursnani, CEO of Konexa.
