PowerGen Renewable Energy (“PowerGen”) has partnered with leading international investors to establish a scalable and distributed renewable energy platform aimed at deploying 120 MW of renewable power solutions, including battery energy storage, across Africa. This platform brings together PowerGen, the Private Infrastructure Development Group (PIDG), the Danish Investment Fund for Developing Countries (IFU), EDFI Management Company through its EU-funded Electrification Financing Initiative (ElectriFi), and the African Development Bank’s Sustainable Energy Fund for Africa (SEFA).
PIDG’s anchor commitment was provided through InfraCo, its project development solution, with additional concessional capital from PIDG Technical Assistance. SEFA, managed by the African Development Bank, supports private sector investments in renewable energy and energy efficiency.
With over 13 years of experience, PowerGen will use the funds to deploy a 120 MW portfolio comprising renewable mini-/metro-grids and commercial and industrial (C&I) power solutions, including battery energy storage. Initially, the focus will be on Nigeria, Sierra Leone, and the Democratic Republic of the Congo (DRC), with plans to expand across the region. PowerGen will leverage its robust pipeline and collaborate with local developers and engineering, procurement, and construction (EPC) partners to accelerate electrification for the 570 million people in sub-Saharan Africa without electricity, according to IRENA.
The first transaction closed in January 2025 and will drive further equity and debt investments throughout the year. PowerGen, a private sector partner of Power Africa—a U.S. government-led initiative—received technical assistance and prior funding contributions from ElectriFi and SEFA.
Claire Jarratt, PIDG Head of Investment Management for InfraCo, expressed confidence in PowerGen’s ability to deliver high-quality energy infrastructure in challenging conditions and hailed the investment as transformational for sub-Saharan Africa.
Luke Foley, PIDG Deputy Head of Technical Assistance, highlighted the investment’s alignment with PIDG’s mandate to deploy sustainable energy solutions, addressing climate change and fostering regional economic resilience.
Henrik Henriksen, IFU Investment Director, emphasized the need for clean energy to empower underserved African communities, enhancing climate resilience and living standards while minimizing greenhouse gas emissions.
Rodrigo Madrazo Garcia de Lomana, CEO of EDFI Management Company, praised the catalytic impact of their initial investment in PowerGen, underscoring the importance of early-stage funding in unlocking transformative sustainable energy solutions.
Dr. Daniel Schroth, African Development Bank’s Director of Renewable Energy and Energy Efficiency, reaffirmed the Bank’s commitment to private investment in sustainable infrastructure, noting that the project will expand electricity access in underserved regions, stimulate economic activity, and create jobs, supporting the goals of Mission 300.
With funding secured, PowerGen aims to power over 68,000 households and reduce energy costs for 7,000 businesses, boosting productivity, creating jobs, and driving economic growth.
CEO Aaron Cheng expressed gratitude to partners, emphasizing PowerGen’s commitment to delivering clean, reliable energy and accelerating Africa’s energy transition and socio-economic development at scale.
