The African Development Bank (AfDB), Renewable Energy (PowerGen), and other leading investors have launched a scalable, distributed renewable energy platform targeting the deployment of 120 MW of renewable power, including battery energy storage solutions, across African countries.
A news report from the African Press Organization (APO) Group circulated on behalf of the development finance institution indicates that the platform is a collaboration between PowerGen and 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).
The medium reported that the anchor commitment from PIDG was made through InfraCo, its investment arm, with concessional capital provided by PIDG Technical Assistance.
According to the news report, building on PowerGen’s experience of over 13 years in 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 (C&I) power solutions, inclusive of battery energy storage.
Initially focused on Nigeria, Sierra Leone, and the Democratic Republic of the Congo (DRC), the platform will be widened within the region, leveraging PowerGen’s deep pipeline in combination with local developer and engineering, procurement and construction (EPC) partnerships.
Industry experts believe that adopting a platform approach holds the potential to accelerate efforts to connect the 570 million people across sub-Saharan Africa who currently lack access to electricity, according to data from IRENA. The first closing of the transaction was reached in January 2025 and will catalyse additional equity and debt finance later this year.
Commenting on the collaborative initiative, AfDB’s Director of Renewable Energy and Energy Efficiency, Dr Daniel Schroth, said: “The African Development Bank’s contribution to PowerGen’s platform reflects our commitment to catalysing private investment in sustainable infrastructure and energy access in line with the objectives of Mission 300. This project will bring electricity to underserved areas in Nigeria, Sierra Leone, and the DRC, and generate significant economic activity and create numerous employment opportunities. It’s an excellent example of our strategy to drive development through targeted partnerships.”
In her remarks, PIDG’s Head of Investment Management for InfraCo, Claire Jarratt, said: “PIDG has worked with PowerGen for a number of years in Sierra Leone, and we are confident in their ability to develop, deliver and operate high-quality distributed energy infrastructure in challenging conditions. We are therefore delighted to anchor this new investment. We are pleased to be working with partners to support PowerGen to expand its offering across sub-Saharan Africa at a platform scale that has the potential to be truly transformational.”
Also speaking on the innovative clean energy platform, 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”, he added.
The CEO of EDFI Management Company, Rodrigo Madrazo Garcia de Lomana, explained: “Our initial investment in PowerGen Renewable Energy in 2019 has proven to be truly catalytic, paving the way for this significant funding round. We are excited to continue supporting PowerGen’s growth as part of this round, which showcases the ripple effect of our early commitment. PowerGen exemplifies how targeted early-stage funding can unlock transformative solutions for sustainable energy access in emerging markets.”
Similarly, CEO of PowerGen, Aaron Cheng, enthused: “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.”
Analysts are optimistic that 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, as increasing access to reliable and affordable electricity is expected to enhance business productivity, create indirect jobs and drive economic growth.
