Following the halt of the proposed Enhanced Trade and Investment Partnership (ETIP), UK-based energy developer Konexa has finalized its deal to launch a power-trading platform in Nigeria. Working alongside North South Power, Microsoft will provide part of the funding for the project.
Efficient Energy Management
Konexa is an energy developer that specializes in on-grid and off-grid power. They aim to deliver affordable and sustainable energy for their clients, many of whom are in the sub-Saharan region.
Without energy, a lot of modern services won’t work. That doesn’t just include basic life-quality services, but also the internet and other advanced infrastructure. Today, the internet has become vital for work through video conferencing. It also houses entertainment industries like video streaming and iGaming, where websites store hundreds of games on their pages. A working energy grid enables all of those services, from streetlights to online blackjack games. Through working with Konexa, the North South Power company can create renewable energy that will last.
This comes as part of a sustainable energy push from countries across Europe and Africa, which aims to futureproof existing infrastructure and develop more efficient means of powering the world. In Nigeria, North South Power is receiving an $18 million investment from benefactors dedicated to ventures that could benefit the climate, including Microsoft’s climate innovation fund.
Details of the Agreement
Under the finalized agreement, Konexa will build a 100% renewable energy grid to power two sites in Nigeria. Both sites belong to Nigerian Breweries, one of the biggest companies listed on the Nigerian stock exchange. If Konexa can deliver their end of the agreement, then other business sectors are likely to buy into a green energy transition.
Konexa’s new energy network requires two things. First are power purchasing rights from the Gurara hydroelectric power stations. The second will be handled by MBH Power, who will fit transformers in the Kaduna State region. Once fully operational, the network will ferry energy from the Gurara River to the two Nigerian Breweries sites. This will bring the area closer to full energy sustainability. It marks another step toward Nigeria’s goal to achieve efficient green energy by 2060.
The Enhanced Trade & Investment Partnership
The Konexa deal was struck in February, when UK Business and Trade Secretary Kemi Badenoch visited the country to negotiate the Enhanced Trade and Investment Partnership (ETIP) deal. Badenoch oversaw both the signing of the ETIP and Konexa’s sustainable energy plan with Nigerian power suppliers.
When drafted, the ETIP was hailed as a first-of-its-kind deal proposed between the UK and Nigeria. Both countries share a trading relationship worth £7 billion ($8.8 billion) which was set to grow under the proposed agreement. A lot of its investment plans focused on Nigeria’s growing legal, financial, and technological sectors. That growth will rely on efficient, clean energy provided by companies like Konexa.
While the Konexa deal is still going ahead, the ETIP was later halted by the Nigerian House of Representatives due to barriers it would place on Nigerian lawyers operating internationally. As such, it is being investigated and terms are being renegotiated. Since the issue is a small part of a much larger deal, a revised version of the ETIP will likely be agreed upon in the future, with terms that are more favorable for both British and Nigerian interests.
and then