Kano Electricity Distribution Company is seeking $200 million in investment to modernize its infrastructure and modify electricity distribution for an estimated 25 million Nigerians.
According to Businessday, Kano Electric is partnering with a Mauritius-based firm, BlackAion Capital, to re-capitalize the network and specifically work on the $200 million fundraise for the interconnected mini-grids and embedded generation projects in Kano, Katsina, and Jigawa States.
The managing partner at BlackAion, Okwu Njoku, stated that the ambitious plan, championed by the company’s core investors, aims to build at least 200MW of incremental capacity through at least 100 mini-grids and embedded generation.
“We believe Kano’s network is the most exciting network for investment in Africa, not just Nigeria. Where else do you have a large economy with 25 million people surviving primarily on diesel and small petrol generators with insufficient grid supply?”
He went on to say, “Every green investor in the world should be trying to get into Kano because the environmental impact of allowing Kano DISCO to continue to be inefficient is too high, and you can still make a high return while being good” .
He also said that “We are looking at some of our key industrial clusters such as Tokarawa and Sharada for 24-hour supply through embedded generation” .
The new core investors in Kano DisCo have indicated their intention to make Kano DisCo the first “Green DISCO in Africa.”
They plan to do this by utilizing Embedded Solar Hybrid Power Plants, mini-grids, Energy Storage Systems, and Power Purchase Agreements with Clean Energy Generators such as nearby hydro-power plants.
Kano DisCo also announced plans to execute more mini-grids with a suite of Developers and Engineering, procurement, and construction firms led by those who completed the Zawaciki project to accelerate project execution and build out 100 interconnected mini-grids in a shorter time frame.
According to a Kano DisCo release, the $2 million Interconnected mini-grid (the largest of its kind) contains a 1MW interconnected Solar-Diesel Hybrid Solar Plant, metering for 2000+ consumers, and low voltage network renovation and rehabilitation.
Remember that Future Energies Africa announced the acquisition of Kano DisCo on November 3 after successfully suspending the sale to PowerCom through court action in July.
The recent advances in Kano DisCo are significant since President Bola Tinubu signed the electricity bill in June, allowing states, enterprises, and individuals to create, transfer, and distribute power.
