NIGERIA: CFM and Microsoft invest $18m in clean energy trading

UK-based Konexa obtained its renewable energy trading licence from the Nigerian Electricity Regulatory Commission (NERC) in June 2023. As part of the development of its activities in Nigeria, the company, based in London, UK, has raised funds that have attracted two investors.

Climate Fund Managers (CFM) and the Climate Innovation Fund of US IT giant Microsoft are injecting $18 million into Konexa to help it provide clean energy solutions to Nigerian businesses, which are dependent on load shedding and the use of fossil fuel-powered generators. This is the case of brewer Nigerian Breweries, which will be working with Konexa to decarbonise two of its factories in the state of Kaduna.

Impact in rural areas

In practical terms, Konexa will be providing an alternative to diesel-powered generators. The company, headed by Pradeep Pursnani, will purchase electricity produced by the 30 MW Gurara hydroelectric power station on the Gurara River. TThis energy infrastructure is operated by the Nigerian company North South Power Company.

North South Power Company will sell part of its production to Konexa to supply the Nigerian Breweries plants in Kaduna. This clean energy should then cover all its needs, i.e. an estimated annual capacity of 20.5 GWh. Partnerships of this kind are set to multiply thanks to the investment by CFM and Microsoft.

In addition to trading electricity for businesses, Konexa also intends to pursue its initiatives in favour of electrification. The company is implementing a programme that has already enabled the villages of Chikaji Gwari and Chikaji Tsakiya to benefit from 200 electricity connections, as well as supplying solar equipment that now facilitates several sectors of activity, notably small-scale farming.

Cover photo: By AFRIK21