PowerGen Partners with Global Investors to Launch Transformational 120MW Renewable Energy Platform Across Africa

The initiative is poised to provide clean and reliable electricity to underserved communities, transforming socio-economic conditions across the continent.

PowerGen Renewable Energy, in collaboration with leading international investors, has announced the launch of a scalable renewable energy platform aimed at deploying 120 MW of renewable power and battery energy storage solutions across Africa. The initiative is poised to provide clean and reliable electricity to underserved communities, transforming socio-economic conditions across the continent.

The platform is supported by a coalition of global partners, including the Private Infrastructure Development Group (PIDG), the Danish Investment Fund for Developing Countries (IFU), EDFI Management Company through the EU-funded ElectriFi, and the African Development Bank’s Sustainable Energy Fund for Africa (SEFA). PIDG, through its investment arm InfraCo, has provided anchor funding, leveraging concessional capital for technical assistance.

Dr. Daniel Schroth, Director of Renewable Energy and Energy Efficiency at the African Development Bank, emphasized the initiative’s alignment with Mission 300, the continent-wide effort to electrify 300 million Africans by 2030: “This project exemplifies how catalytic financing can attract private investment, bringing electricity to underserved areas while fostering economic growth and job creation.”

Addressing Africa’s Energy Crisis

The platform builds on PowerGen’s 13 years of experience developing and operating distributed renewable energy solutions in Africa. Initial deployment will focus on Nigeria, Sierra Leone, and the Democratic Republic of the Congo (DRC), with plans to expand regionally. The platform aims to connect over 68,000 households and reduce energy costs for 7,000 businesses, directly impacting over 300,000 people.

By adopting a platform approach, the initiative seeks to streamline the deployment of mini-grids and commercial/industrial (C&I) solutions, integrating innovative off-grid technologies and battery storage to address power gaps in remote areas.

Unprecedented Financial Commitment

The first closing of the transaction in January 2025 will catalyze further equity and debt financing. This funding will support expanded infrastructure investments, boosting economic resilience and mitigating climate change.

Key stakeholder statements:

• Claire Jarratt, PIDG’s Head of Investment Management: “PowerGen has proven its ability to deliver high-quality distributed energy infrastructure. This platform has the potential to be truly transformational for sub-Saharan Africa.”
• Henrik Henriksen, IFU Investment Director: “This initiative addresses the dual challenge of expanding clean energy access and combating climate change, improving living standards without increasing greenhouse gas emissions.”
• Rodrigo Madrazo Garcia de Lomana, CEO of EDFI Management Company: “Our early-stage investment in PowerGen has been catalytic, paving the way for this groundbreaking funding round.”

Socio-Economic Benefits

The initiative’s impact is expected to extend beyond energy access:

• Increased business productivity and competitiveness.
• Job creation, both direct and indirect, across the supply chain.
• Enhanced quality of life for households through reliable electricity access.

Aaron Cheng, CEO of PowerGen, remarked: “This marks a transformational next chapter for PowerGen. With the support of our partners, we are scaling efforts to power Africa’s energy transition and drive inclusive economic growth.”

Looking Ahead

The initiative’s long-term goal is to reduce Africa’s energy deficit, where nearly 570 million people lack electricity, according to IRENA. By combining traditional grid expansion with off-grid innovations, PowerGen’s platform offers a scalable solution for achieving universal energy access by 2030.

As the platform gains momentum, it is expected to serve as a blueprint for other regions, aligning with global efforts to combat energy poverty while addressing climate challenges.