Image: Aerra Carnicom, Wikimedia Commons
UK energy developer Konexa, investment manager Climate Fund Managers (CFM), and Norwegian development finance institution Norfund have signed a development funding agreement in Nigeria.
The agreement will see the development of a new 50 MW solar plant alongside new and strengthened grid infrastructure that will connect two sites belonging to Nigerian Breweries.
The partners are jointly investing $3.6 million. CFM’s EU-supported blended finance facility Climate Investor One will contribute 50%, while Norfund and Konexa will contribute 25% each to the total.
According to a statement from Konexa, the commitments are expected to unlock approximately $80 million in further investments for construction at financial close, expected during the second half of this year.
The new project will also support Konexa’s continued rollout of a private renewable energy trading platform to a broader base of commercial and industrial clients in Nigeria.
“The European Union’s early support helped unlock private capital for the first phase of the project, and we expect Norfund’s catalytic funding to do the same for the next phases,” said Darron Johnson, CFM regional head of Africa. “It’s a clear example of how blended finance can deliver impact at scale in emerging markets like Nigeria, where access to electricity remains a critical issue.”
In March, Nigeria’s Rural Electrification Agency entered into an agreement with Lagos-based renewables developer Oando Clean Energy for a 1.2 GW solar assembly plant.
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