Renewable energy developer Konexa with funding from Climate Fund Managers (CFMs) through the Climate Investor One (CI1) has partnered with Kaduna Electric Distribution Company (KAEDCO), to co-develop renewable energy projects and distribution sub-franchise in Nigeria, particularly the Kaduna state.
This venture mainly aims at the development and construction of a 2.5MW solar PV plant with the potential to include a storage component, and the construction of eight solar mini-grids and an associated distribution network.
It also targets a roll-out of solar home systems, deployment of smart metering infrastructure and an integrated cutting-edge information and operations technology platform, grid network upgrades, as well as securing energy supply from nearby existing renewable generation assets.
This project will require an investment of approximately US$ 50M.
Impact of the proposed project in Nigeria
This project will enable Konexa to serve the entire range of customers in its sub-franchise area – from large commercial and industrial customers that currently cannot rely on KAEDCO due to supply reliability and quality issues, to small rural customers that are not viable to be reached by the grid.
Pradeep Pursnani, the Chief Executive Officer at Konexa said that this project will have a transformational impact on the overall power sector in the West African country and the lives of many Nigerians that need to access affordable and reliable power for their homes and businesses.
“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,” he concluded.
CI1 contribution to Nigeria’s grid stability
This project gives Climate Investor One (CI1) the opportunity to contribute towards Nigeria’s grid stability, accelerate the country’s sector reforms, and demonstrate the private sub-franchise model. CI1’s all equity solution and technical expertise bridge development gaps and expedite project completion.