PowerGen, African Development Bank, and Partners Launch Renewable Energy Platform.

ABIDJAN, Ivory Coast, January 17, 2025/ — PowerGen Renewable Energy (PowerGen) has secured partnerships with leading international investors to establish a scalable, distributed renewable energy platform targeting the deployment of 120 MW of renewable power across Africa. This initiative includes battery energy storage solutions, marking a significant step in enhancing energy access across the continent.

The collaboration, which brings together PowerGen, the Private Infrastructure Development Group (PIDG), the Danish Investment Fund for Developing Countries (IFU), EDFI Management Company through its Electrification Financing Initiative (ElectriFi), and the African Development Bank’s Sustainable Energy Fund for Africa (SEFA), aims to tackle energy access in sub-Saharan Africa. PIDG’s anchor commitment through its investment arm, InfraCo, with concessional capital from PIDG Technical Assistance, will bolster the platform’s reach and effectiveness.

Unlocking Africa’s Energy Potential

PowerGen’s 13 years of experience in developing and operating projects across Africa serves as the foundation for this ambitious initiative. The platform will focus initially on Nigeria, Sierra Leone, and the Democratic Republic of Congo (DRC) while expanding to other parts of the region. Leveraging PowerGen’s deep pipeline and partnerships with local developers, the platform aims to rapidly increase energy access for the 570 million people across sub-Saharan Africa currently without electricity, as reported by IRENA.

The collaboration will deliver a portfolio of renewable mini-grids and commercial and industrial (C&I) power solutions, enabling sustainable power to underserved communities and businesses. This initiative has the potential to significantly reduce the cost of energy and improve the quality of power supply for millions.

A Collaborative Effort for Energy Access

The first closing of the transaction was reached in January 2025, catalyzing additional equity and debt finance later in the year. PowerGen, a private sector partner of Power Africa, has received support through technical assistance and previous funding from initiatives like ElectriFi and SEFA.

Claire Jarratt, Head of Investment Management for InfraCo, PIDG, highlighted the long-standing relationship with PowerGen, emphasizing confidence in their ability to execute high-quality distributed energy infrastructure. “This investment epitomizes the PIDG mandate, reinforcing our commitment to fostering sustainable energy solutions,” Jarratt said.

Henrik Henriksen, Investment Director at IFU, stressed the importance of providing access to clean energy, which empowers underserved communities and businesses to become more resilient to climate change. IFU’s joint investment with PowerGen aligns with Africa’s transition to climate resilience.

Rodrigo Madrazo Garcia de Lomana, CEO of EDFI Management Company, emphasized the catalytic role of the initial 2019 investment in PowerGen, which paved the way for this major funding round. PowerGen’s ability to unlock sustainable energy access in emerging markets is a testament to the success of early-stage funding in the sector.

Commitment to Transforming Africa’s Energy Landscape

Dr. Daniel Schroth, Director of Renewable Energy and Energy Efficiency at the African Development Bank, praised the project as an example of the Bank’s strategy to drive development through partnerships. He noted that the initiative would bring electricity to underserved areas in Nigeria, Sierra Leone, and DRC, creating economic activity and generating employment opportunities across the continent.

PowerGen CEO Aaron Cheng expressed excitement about the project’s potential to drive Africa’s energy transition. “We are grateful to our partners for their collaboration, and together, we look forward to contributing to socio-economic growth across the continent,” Cheng said.

Impact on Business and Communities

With funding secured, PowerGen is set to provide energy to over 68,000 households and reduce power costs for 7,000 businesses. By increasing access to reliable and affordable electricity, the initiative is expected to enhance business productivity, create jobs, and stimulate economic growth across sub-Saharan Africa.

The project represents a significant leap forward in Africa’s energy transition, providing a cleaner, more sustainable energy future for millions while fostering long-term economic growth.