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Investors target Nigerian solar market as big customers go off-grid

May 13, 2025

Konexa, a UK-based energy developer, together with Climate Fund Managers and Norfund, will put $3.6m into growing its operations in Nigeria. This initial investment is expected to unlock a further $80m for the construction of a 50 MW solar plant and grid infrastructure. The plant will supply power to Nigerian Breweries Plc in Lagos and Enugu State.

  • Nigeria has faced decades of under-investment in renewable energy generation and grid infrastructure. Access to reliable electricity remains limited, and many businesses rely on expensive, polluting diesel and gas generators. 

  • This systemic failure has driven a significant portion of the country's Commercial and Industrial (C&I) sector towards captive power generation to ensure operational continuity. Solar has received the most investments.

  • Our take: Many C&I customers have solid revenue streams, providing assurance of repayment for investors… Read more (2 min)

Interest rates on pay-as-you-go solar home systems, financed by South African banks, rose from 6.18% in April to 6.59% in May. Cash prices remained the same, but the monthly repayment amount went up. This comes amidst increased demand for solar as an 12% electricity price increase took effect in April and an increase in import duties is expected.

  • Meanwhile, Kenya’s average financing cost for solar systems dropped by 9% in May. This is due to fierce competition between solar companies benefitting customers.

  • Our analysis is based on solar home systems financing data tracked by Renewables Rising in four representative countries: Kenya, South Africa, Egypt and Nigeria, on a monthly basis.

  • Our take: Rising electricity tariffs in South Africa are giving banks a chance to increase solar loan interest rates… Read more (2 min)

For rural healthcare solar projects to succeed, we must adopt systems thinking, viewing them as interconnected and interdependent, says energy consultant Keziah Khalinditsa in today's opinion article. She points out that many project failures stem from the lack of a clear post-construction plan, including trained technicians and strategies to create demand.

  • Ms Khalinditsa holds a masters in agricultural engineering and has worked in the energy sector for over 10 years. Her experience includes a role at Abt Associates as a Senior Project Specialist, leading healthcare electrification projects in Uganda and Kenya.

  • Healthcare electrification is one of the areas with low access levels in Africa. According to research by SEforALL, only 28% of healthcare facilities have access to reliable electricity, contributing to poor health outcomes in the region.

  • Click here to read more (2 mins)

The first transformer for the Umbila Wind Farm arrives in South Africa

Events

🗓️ Register for a webinar on interconnected mini-grids (May 14)

🗓️ Attend the Invest in African Energy event (May 15)

🗓️ Network with peers at the Africa Energy Technology Conference (May 27)

Jobs

👷🏻‍♂️ Join CrossBoundary as a Senior Project Construction Manager (Congo)

🛠️ Become Engie’s Operations & Technical Manager (Zambia)

📊 Apply for UNDP’s Programme Analyst role (South Africa)

Various 

💡 Africa energy dialogue targets energy access gaps

🔌 Scatec launches 36 MW solar PV and 20 MWh BESS project in Chad

☀ Sibanye-Stillwater announces commercial operation of 89 MW wind farm

Seen on LinkedIn 

Lolade Abiola, Program Manager at SEforALL, says, “If we want the digital revolution to create jobs at scale, we must ensure it’s built on a foundation of energy access and grid stability.”