The European Union has added €10 million ($11.9 million) in funding for the Climate Investor One (CI1) financing facility.
Initially, the European Union (EU) had committed €30 million ($35.9 million) in funding for renewable energy projects in emerging markets, with a specific designation towards financing projects within Nigeria.
Climate Fund Managers (CFM), in cooperation with the Dutch entrepreneurial development bank FMO, will manage the fund.
The EU grant has the potential to unlock €100 million ($119.7 million) in investments in renewable energy in Nigeria.
The funding is expected to enable the construction of over 150MW of renewable energy projects.
In addition to commitments already secured from other CI1 donors, some of this funding may go directly towards financing the second phase of a 30MW solar project and distribution concession in Kaduna, Nigeria.
Known as KONEXA, the project has already received approval for development activities under CI1’s Development Fund and is expected to enter construction in 2021.
KONEXA will help to drive sustainable economic growth in Northern Nigeria, and throughout the country.
Tarun Brahma, head of investments at Climate Fund Managers, said: “We are delighted to have received this further vote of confidence in Climate Investor One from the EU.
“The additional funding will better equip us to augment and accelerate our contribution to grid stability and energy sector development in Nigeria.”