PowerGen Renewable Energy (PowerGen) has unveiled a pioneering partnership with leading international investors to create a scalable platform for distributed renewable energy solutions across Africa. This ambitious initiative aims to deploy 120 MW of renewable power, including battery energy storage, to help bridge the continent’s significant energy gap.
The platform is a collaborative effort involving 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), and the African Development Bank’s Sustainable Energy Fund for Africa (SEFA). PIDG’s commitment was facilitated through InfraCo, utilizing concessional capital from PIDG Technical Assistance. SEFA, a multi-donor fund managed by the African Development Bank, provides catalytic financing to stimulate private sector investments in renewable energy and energy efficiency.
Building on over 13 years of operational expertise, PowerGen plans to develop a 120 MW portfolio of mini- and metro-grids, as well as commercial and industrial (C&I) power systems. These projects, which will incorporate battery energy storage, will initially focus on underserved regions in Nigeria, Sierra Leone, and the Democratic Republic of the Congo (DRC).
With an estimated 570 million people in sub-Saharan Africa lacking access to electricity, the platform’s regional expansion aims to accelerate electrification through collaborations with local developers and EPC partners. The first phase of funding closed in January 2025, setting the stage for additional equity and debt financing later this year.
With the secured funding, PowerGen is poised to provide reliable electricity to over 68,000 households and reduce power costs for 7,000 businesses. This increased access to electricity is expected to drive economic activity, boost productivity, and create significant employment opportunities.
Aaron Cheng, CEO of PowerGen, emphasized the company’s vision:
We are excited to embark on this transformative chapter in Africa’s energy journey. Through our partnership, we aim to contribute meaningfully to the continent’s energy transition and socio-economic growth.
This initiative represents a significant step toward closing Africa’s energy gap, enhancing climate resilience, and fostering sustainable development across the region.
