UK-based energy developer and investor Konexa has signed a Development Funding Agreement (DFA) with Climate Fund Managers (CFM) and Norfund. This partnership will enable the financial institutions to support the next phases of Konexa’s renewable energy expansion in Nigeria.
The partners will jointly invest USD 3.6 million, with CFM’s Climate Investor One (CIO)—an EU-supported blended finance facility—contributing 50%, while Norfund and Konexa each provide 25%. Together, these commitments are expected to unlock approximately USD 80 million in additional funding for construction, with financial close anticipated in the second half of 2025.
“With this new funding, Konexa has secured over USD 100 million to scale our delivery. We can now take the next step in helping the commercial sector access reliable, affordable power, decarbonise and demonstrate how the private sector can help solve Nigeria’s power challenge,” said Pradeep Pursnani, CEO of Konexa.
The agreement will enable the development of a 50MW solar PV plant and construction of grid infrastructure to connect two Nigerian Breweries Plc (NBPlc) sites in Lagos and Enugu State. It will also support the expansion of Konexa’s private renewable energy trading platform to more commercial and industrial (C&I) clients, while reinforcing distribution grids around client sites—benefiting both businesses and wider electricity consumers.
Once operational, the project is expected to offset approximately 30,000 tonnes of CO₂ emissions annually, support 100 construction jobs, and create 35 permanent roles.
Konexa model to transform RE investment landscape in Nigeria
According to Konexa, its model will help accelerate access to reliable, clean, and affordable power for Nigeria’s large commercial and industrial customers. For decades, the country has suffered from chronic underinvestment in renewable energy generation and grid infrastructure, leaving businesses with limited access to reliable electricity. Many are forced to depend on costly, polluting diesel and gas generators as a result.
“We see Konexa’s business model as an innovative and impactful solution, addressing the country`s sector challenges. We are excited to join forces with Konexa and CFM,” said Birgit Edlefsen, Senior Vice President, Renewable Energy at Norfund.
The government of Nigeria seeks to have renewables contribute 30% of total electricity generation by 2030 according to its Vision 2030 plan.
The new project builds on the first phase – a USD 18 million investment announced in March 2024 and co-funded by CFM, the European Union, and Microsoft’s Climate Innovation Fund – which launched Konexa’s renewable trading platform and delivered renewable energy to two NBPlc sites in Kaduna State. Grid and storage upgrades in the next phase will enable full power delivery to these sites under the existing Power Purchase Agreement.
“This agreement is a major step in scaling the renewable energy platform we’ve built in partnership with Konexa. 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. 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,” said Darron Johnson, Regional Head of Africa at Climate Fund Managers.
