AfDB Partners PowerGen to Generate 120MW of Renewable Energy
PowerGen Renewable Energy has partnered with the African Development Bank and other leading international investors to establish a scalable, distributed renewable energy platform.
The platform targets deploying 120 megawatts of renewable power in Nigeria and other African countries, including battery energy storage.
In a statement on Sunday, PowerGen disclosed that the platform is also a collaboration between PowerGen and the Private Infrastructure Development Group, the Danish Investment Fund for Developing Countries, EDFI Management Company, through its EU-funded Electrification Financing Initiative, ElectriFi, and the African Development Bank’s Sustainable Energy Fund for Africa.
It said PIDG’s anchor commitment was made through InfraCo’s investment arm, its project development solution, with concessional capital provided by PIDG Technical Assistance.
SEFA is a multi-donor special fund managed by the African Development Bank that provides catalytic finance to unlock private sector investments in renewable energy and energy efficiency.
“Building on PowerGen’s 13-plus years of experience developing, implementing, and operating projects across Africa, the funds will support the deployment of a 120MW portfolio of renewable mini- /metro-grids and commercial and industrial power solutions, inclusive of battery energy storage.
“Initially focused on Nigeria, Sierra Leone, and the Democratic Republic of the Congo, the platform will be expanded within the wider region, leveraging PowerGen’s deep pipeline in combination with local developer and engineering, procurement, and construction partnerships.
“Adopting a platform approach has the potential to accelerate efforts to connect the 570 million people across sub-Saharan Africa who currently lack access to electricity,“ the statement read partly.
It said the first closing of the transaction was reached in January 2025 and will catalyse additional equity and debt finance later this year.
PowerGen is a private sector partner of Power Africa, a United States Government-led partnership, which reportedly provided technical assistance to PowerGen and contributed past funding to ElectriFi and SEFA.
PIDG Head of Investment Management for InfraCo, Claire Jarratt, said, “PIDG has worked with PowerGen for several years in Sierra Leone, and we are confident in their ability to develop, deliver, and operate high-quality distributed energy infrastructure in challenging conditions.”
On his part, the IFU Investment Director, Henrik Henriksen, said, “There is a tremendous need for enabling access to clean energy that can assist underserved households and businesses in Africa to become more resilient to climate change and to provide them with opportunities for better living conditions without further increasing greenhouse gas emissions.
“Therefore, we are very proud to be a part of a joint investment enabling PowerGen to develop sustainable off-grid power solutions in sub-Saharan Africa. This aligns with our increased focus on supporting Africa’s transition to be more climate resilient.”
The CEO of PowerGen, Aaron Cheng, noted “We are thrilled to announce this transformational next chapter to drive our vision of providing clean, reliable, and affordable energy across Africa. We are grateful to our terrific partners for their collaboration, and together, we look forward to contributing at scale to the energy transition and socio-economic growth across the continent.
“With funding secured, PowerGen is well-positioned to serve the energy needs of more than 68,000 households and reduce the cost of power for 7,000 businesses. Increasing access to reliable and affordable electricity is expected to enhance business productivity, create indirect jobs, and drive economic growth.”
The statement stated that PowerGen Renewable Energy in Nigeria developed the first mini-grid under the Nigeria Electrification Programme in Rokota, Niger State, and also the first interconnected mini-grid in Toto, Nasarawa State. It said the firm now has 16 operational renewable mini-grids in Nigeria providing electricity to over 12,000 households.
