Finance

USTDA grant to support privately generated renewable energy in Nigeria

USTDA grant to support privately generated renewable energy in Nigeria
The US Trade and Development Agency (USTDA) has awarded a grant to Abuja-based Konexa for a feasibility study that will evaluate Nigeria’s access to reliable, privately generated renewable energy.

Konexa intends to develop up to 2.5MW of solar PV energy to serve grid and under-grid customers. The company also plans to incorporate 30MW of hydropower into their generation mix, which they intend to procure from an existing hydropower plant that has been constructed, but not commissioned.

“This project will support the development of critical energy infrastructure and an innovative business model to improve Nigeria’s electricity generation, transmission and distribution as well as enhance the supply of energy to off-grid customers,” said USTDA’s Acting Director Thomas R. Hardy.

“It demonstrates USTDA’s commitment to supporting Nigeria’s economic growth while creating opportunities for US companies to develop world-class infrastructure,” Hardy added.

Specifically, USTDA’s grant will help define the technical specifications, project economics and regulatory and legal requirements to develop 2.5MW of solar photovoltaic energy, as well as procure and distribute 30MW of hydroelectricity within the service area.

A US company will be selected on a competed basis to carry out the study. USTDA’s partner, Konexa, is a Nigerian entity established to develop viable business models to accelerate energy access in developing countries.

“We are proud to be partnering with USTDA on this innovative project that has the potential to catalyse large scale private sector investment to make the distribution sector in Nigeria financially viable,” said Pradeep Pursnani, Konexa’s CEO.

This project also supports Prosper Africa, a US government initiative to substantially increase two-way trade and investment between the US and Africa.

US businesses interested in submitting proposals for the USTDA-funded feasibility study should visit www.ustda.gov/work/bid-on-an-overseas-project.

This article was originally posted on ESI Africa and was republished with permission.