Konexa is moving on to Phase 1B and 2 of their distribution and generation projects with Nigeria Breweries PLC. Phase 1B will involve the construction of overhead distribution lines, and the installation of battery energy storage systems at two Nigerian Brewery PLC sites in the Lagos and Ama States. Phase 2 will provide the required electricity to the sites by constructing a 60MW Solar PV facility, located in the Abuja state.

Our Development Partner

ECOF Konexa

We Invest

USD 5.6 million DF 1 and USD $48.8 million CEF 1

Estimated Project Impact

38 jobs created

46,230 tCO2eq/year of emissions avoided

421,667 people served

60 Mw  Total installed capacity

99.89 GWh Total renewable energy generated (GWh/year)

E&S Rationale

The environmental and social risk (“E&S”) of the project has been classified as category B+ (in accordance with CI1’s risk categorisation) which is equivalent to International Finance Corporation (IFC) Category B. 

The project entails the rehabilitation and operation of existing power distribution infrastructure powered by renewable energy, utilizing pre-established Rights of Way (ROW).

For the development of the distribution infrastructure, there is no requirement for land acquisition or resettlement, and the project does not intersect with areas of cultural heritage or territories of Indigenous Peoples. Therefore, Performance Standards 5, 7, and 8 are not applicable. The potential environmental and social risks identified primarily around occupational health and safety (OHS), community safety during construction, and waste management are site-specific, reversible, and mitigable through established systems and management plans, including the Environmental and Social Management Plan (ESMP), Construction-ESMP (C-ESMP), and the broader Environmental, Social and Governance Management System (ESGMS). 

The generation component involves the construction of a 100 Mw Solar PV plant in Abuja state by Abuja Steel Mills Limited (ASML). Konexa is co-funding the construction of the 100 Mw facility, and will receive 60 Mw of generational capacity from the facility. IFC PS 1-6 is applicable to the project, with IFC PS 5 being triggered by economic displacement due to ongoing seasonal farming and nomadic activities at the site. There are no indigenous peoples or cultural heritage sites on the proposed site. Consequently, PS 7 and 8 are not triggered.

Funding Rationale

CI1 is participating as co-developer, financial advisor and E&S advisor in the project. CI1’s investment will finance the construction of the Project, which will contribute to Nigeria’s energy sector reforms and improve the country’s grid stability and performance of the distribution network and reduce technical and commercial losses. In addition, the Project will support the Government of Nigeria’s objectives as expressed in the country’s UNFCCC Nationally Determined Contribution (NDC).  

The parties expect to scale up the Konexa platform across Nigeria.

Region

Lagos and Ama States

Country

Nigeria

Business Model

Platform Company

Environmental and Social Category

Category B+

Sector

Renewable Generation and Distribution

Why Climate Investor One Wants to Invest in This Project

Nigeria is Africa’s most populous country and the largest economy in Sub-Saharan Africa (SSA), yet it has one of the most challenging and complex energy systems in SSA. Despite far reaching power reforms launched by the Government of Nigeria in 2001, the energy sector still faces significant issues including substantial losses, grid instability, inadequate generation capacity and deteriorating grid infrastructure. Konexa is Nigeria’s first independent, integrated utility platform, and the Project will pave the way for further opportunities like this in new markets where successful energy reforms are needed.

Project Site Photo