NIGERIA: USTDA subsidises Konexa for electrification project

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NIGERIA: USTDA subsidises Konexa for electrification project ©Inveru/Shutterstock

The U.S. Trade and Development Agency (USTDA) has recently awarded a grant to power producer Konexa to produce 2.5 MWp of solar power and distribute hydropower in the northern Nigerian state of Kaduna.

The electricity provider Konexa is receiving a grant from the US Trade and Development Agency (USTDA) to expand its operations in Nigeria. The company, with an office in the capital Abuja, wants to generate 2.5 MWp of electricity from several solar photovoltaic systems. These small solar power plants will be installed to supply mini power grids serving residential (household), commercial and industrial customers in Kaduna State in northern Nigeria.

The USTDA did not specify the amount of its subsidy. The US financial institution indicates that its support will enable the technical and financial studies to be carried out. The studies will also address the regulatory and legal requirements of the mini-grids project. “This project will support the development of critical energy infrastructure and an innovative business model to improve the generation, transmission and distribution of electricity in Nigeria, as well as to improve the supply of electricity to off-grid customers,” said Thomas R. Hardy, acting director of the USTDA.

Operating a hydropower facility

“An American company will be selected on a competitive basis to carry out the studies”, the USTDA has already announced. The company selected at the end of the process will also carry out the environmental and social impact studies, assist in the selection of the meters and thus provide an analysis of the expected impacts of the development of the mini-grids.

The U.S. Trade and Development Agency (USTDA) grant is also intended to support the acquisition of 30 MW of hydropower capacity from an existing but decommissioned plant. The electricity will be distributed through the Konexa grid. The USTDA grant is part of Prosper Africa, a U.S. government initiative to increase two-way trade and investment between the United States and Africa.

Jean Marie Takouleu

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