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Konexa, a UK-based integrated energy development and investment platform, has secured a significant investment of USD 18 million from climate-focused fund manager Climate Fund Managers (CFM) and Microsoft’s Climate Innovation Fund. This investment aims to establish Konexa’s private renewable electricity trading platform and provide 100% green energy supply to Nigeria Breweries PLC, a leading client in Nigeria’s brewing industry.
Having obtained a private energy trading license in Nigeria, Konexa is poised to revolutionize the energy market by sourcing renewable power from Independent Power Producers (IPPs) and distributing it through the national grid to private clients at competitive rates. This initiative will enhance energy reliability and sustainability for consumers while bolstering the resilience and efficiency of the national grid.
The flagship project involves transmitting renewable energy from the 30MW Gurara Hydro Power Plant in Kaduna State, Northern Nigeria, to two breweries owned by Nigerian Breweries PLC in Kaduna. By transitioning these facilities from fossil fuels to hydro energy, Konexa aims to mitigate approximately 8,104 tons of CO2 emissions annually, equivalent to removing 1,800 cars from the road each year.
CFM’s investment, facilitated through its Climate Investor One (CIO) fund, supported by the European Commission, underscores its commitment to renewable energy infrastructure in emerging markets. Through technical, financial, and ESG expertise, CFM played a pivotal role in enabling the project to achieve financial close within a short timeframe.
Pradeep Pursnani, CEO of Konexa, expressed gratitude for the support from CFM and Microsoft’s Climate Innovation Fund, highlighting the platform’s potential to integrate sustainable energy sources into the grid and decarbonize the commercial and industrial sector.
Darron Johnson, Regional Head of Investments Africa at CFM, emphasized the importance of Konexa’s trading platform in addressing Nigeria’s grid infrastructure challenges and promoting energy independence among commercial and industrial customers.
Brandon Middaugh, Senior Director at Microsoft’s Climate Innovation Fund, highlighted the investment’s alignment with Microsoft’s vision for a carbon-free future and its potential to deliver clean power to customers in sub-Saharan Africa.
Furthermore, Konexa’s community development program aims to provide electricity access to underserved villages in the Kudana region, fostering economic diversification and empowerment through initiatives such as solar appliance introduction and income-generating activities. |
