Grace Ashiru
Konexa, a prominent renewable energy developer and investor, is accelerating Nigeria’s clean energy growth with a landmark $80 million solar power project supported by the Seed Capital Assistance Facility (SCAF). Confirmed on May 26, 2025, this funding partnership underpins the development of a 50 MW solar power plant and associated infrastructure, set to power two key Nigerian Breweries industrial sites in Lagos and Enugu states.
Addressing Nigeria’s Energy Deficit
Nigeria faces a significant electricity supply gap despite being Africa’s largest population. Over 85 million Nigerians—around 40% of the population—still lack reliable access to electricity. This energy shortfall restricts industrial productivity, economic growth, and the quality of life for millions, leading many businesses and households to rely on expensive, polluting generators.
The Nigerian Breweries sites targeted by Konexa’s project will benefit from stable, affordable, and clean electricity. Reliable power for such large-scale manufacturers boosts operational efficiency and reduces production costs, enhancing competitiveness both regionally and internationally.
Early-Stage Funding: The Critical Catalyst
Securing early-stage financing remains one of the biggest challenges for renewable energy projects in developing countries. This phase includes costly feasibility studies, environmental impact assessments, and detailed financial planning necessary to attract commercial investors. According to the International Renewable Energy Agency (IRENA), the availability of early capital often determines whether renewable projects move forward.
SCAF’s commitment of 25% of the early-stage development capital, alongside Climate Fund Managers (50%) and Norfund (25%), is a crucial catalyst. This blend of “patient capital” de-risks the project, enabling Konexa to complete essential groundwork and unlock further investment.
Scaling Renewable Energy Trading and Market Impact
Beyond infrastructure, Konexa intends to expand its private renewable energy trading platform. Such platforms promote direct energy transactions between producers and consumers, improving market efficiency, price transparency, and accelerating renewable integration into Nigeria’s grid.
This development aligns with ongoing reforms in Nigeria’s electricity market, aimed at liberalization and privatization to increase efficiency and attract private investment.Â
Economic Context: Nigeria’s Evolving Position
Although historically Africa’s largest economy, Nigeria has recently been overtaken by Egypt and South Africa in nominal GDP terms as of 2024. This shift results from currency fluctuations, inflation, and economic challenges. However, Nigeria remains a critical market due to its large population, abundant natural resources, and strategic importance within the continent.
Expanding renewable energy infrastructure like Konexa’s project is key to Nigeria’s economic resilience and future growth, supporting industrial development and improving energy security.
Environmental and Developmental Benefits
The solar project supports Nigeria’s climate commitments by reducing reliance on fossil fuels and cutting greenhouse gas emissions. It will also improve air quality and contribute to sustainable development goals.
Economically, the project fosters job creation both directly in construction and maintenance, and indirectly by enabling expanded industrial activities powered by reliable electricity. Stable power supply is a proven driver of competitiveness and foreign investment.
The Bigger Picture: Bridging Africa’s Renewable Financing Gap
Konexa’s initiative exemplifies how early-stage financing facilities like SCAF are critical to unlocking Africa’s renewable energy potential. By taking on early risks, they enable projects to become bankable and scalable, helping to close the continent’s persistent electricity access gap.
As Nigeria pursues universal electricity access by 2030, supported by its National Renewable Energy Action Plan, projects such as this one are vital for delivering affordable, clean energy to millions and advancing the continent’s energy transition.
Konexa CEO Pradeep Pursnani states:
“This project would not have been possible without the early and catalytic support from SCAF. Their flexible development capital is accelerating our path toward financial sustainability and scaling our impact. It is exactly the kind of support the market needs more of to drive the decarbonisation and energy transition agenda in Africa.”
