Kano State Electricity Distribution Company on Tuesday signed a $100m Memorandum of Understanding with a foreign investor, Konexa, for the generation, storage, and distribution of electricity.
Konexa would invest $100m on the provision of cutting-edge technology in deploying renewable energy.
The Chief Executive Officer of Konexa, Pradeep Pursnan, who said this at the British High Commission in Abuja where the MoU was signed, said the agreement was backed by the Nigeria Sovereign Investment Authority and would produce and distribute 10 megawatts of electricity to 30,000 consumers in Kano.
He said, “In the partnership, Konexa will bring investment, provide better service for the customers, as well as help bring the discos to financial health.
“This is important, given the situation of the power sector in Nigeria where Discos in their majority are struggling to pay for the power that is provided to them.
“So, Konexa, we believe, will significantly help in addressing the power sector in Nigeria.”
Pursnan said towards improving generation capacity, Konexa would deploy solar power, hydropower, and biopower technologies, adding, ‘It is important to complete the project by 2022, in order to quickly replicate same in other states of the federation.
He said, “I hope that after we deliver in these states, we can look at other states across Nigeria. Our business model is very replicable and scalable and provides a win-win for all.
“In Kaduna, we will deliver before the end of the year; the investment is about $90m. It is quite small but it is important to start small, so as to prove our capacity before we can scale up. In Kano, we are estimating the project to hit a little over $100m.”
According to him, the company is partnering with Nigerian distribution companies to rehabilitate the distribution network in Nigeria, meter every consumer, as well as add more generation capacity in order to connect rural areas as well.
The UK Minister for Africa, James Duddridge, who was also at the ceremony, commended the move, saying the time had come for Africa to deploy pollution-free alternative sources of energy.