The African Development Bank (AfBD) and PowerGen Renewable Energy (PowerGen) have announced a strategic partnership with leading international investors to create a scalable, distributed renewable energy platform targeting the deployment of 120 MW of renewable power, including advanced battery energy storage solutions, across Africa.
The initiative is a collaboration between PowerGen and key partners: 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 made through its investment arm, InfraCo, leveraging concessional capital provided by PIDG Technical Assistance.
SEFA, a multi-donor special fund managed by the African Development Bank, also contributed catalytic finance to unlock private sector investments in renewable energy and energy efficiency.
Scaling Clean Energy for Africa’s Underserved Communities
Building on over 13 years of PowerGen’s expertise in developing, implementing, and operating projects across Africa, the platform aims to deploy a 120 MW portfolio of renewable energy solutions.
- This includes mini-grids, metro-grids, and commercial and industrial (C&I) systems, all enhanced by battery energy storage.
- The initiative will initially focus on Nigeria, Sierra Leone, and the Democratic Republic of Congo (DRC), with plans to expand to other regions. PowerGen’s extensive pipeline will be bolstered by partnerships with local developers and engineering, procurement, and construction (EPC) firms.
- According to the International Renewable Energy Agency (IRENA), over 570 million people in sub-Saharan Africa lack access to electricity.
- By adopting a platform approach, the initiative seeks to accelerate electrification efforts and drive transformative change across the region.
Investments to Unlock Transformative Energy Access
The transaction reached its first financial close in January 2025, securing initial funding that will attract additional equity and debt investments later this year. PowerGen is a private sector partner of Power Africa, a U.S. government-led initiative that provided technical assistance to the company and supported funding for ElectriFi and SEFA.
Claire Jarratt, PIDG’s Head of Investment Management for InfraCo, highlighted the significance of the project:
“PIDG has worked with PowerGen in Sierra Leone for years and trusts their ability to deliver high-quality distributed energy infrastructure in challenging environments. This investment represents a transformational step towards achieving sustainable energy access across sub-Saharan Africa.”
Luke Foley, PIDG Deputy Head of Technical Assistance, added:
“This investment reflects PIDG’s mandate to innovate using blended finance tools, combat climate change, and enhance economic resilience in the region.”
Global Collaboration to Drive Economic Growth
Other project stakeholders emphasized the broader impact of the platform:
- Henrik Henriksen, IFU Investment Director:
“There is a tremendous need for clean energy solutions to support underserved communities and businesses. This joint investment aligns with our mission to foster climate resilience in Africa without increasing greenhouse gas emissions.”
- Rodrigo Madrazo Garcia de Lomana, CEO of EDFI Management Company:
“Our early investment in PowerGen in 2019 paved the way for this significant funding round, highlighting the potential of targeted early-stage funding to unlock transformative energy solutions.”
- Dr. Daniel Schroth, African Development Bank Director of Renewable Energy and Energy Efficiency:
“This project embodies our commitment to catalyzing private investment in sustainable energy infrastructure, generating economic activity, and creating jobs in underserved areas.”
PowerGen CEO Aaron Cheng expressed optimism about the company’s growth trajectory:
“We are thrilled to drive our vision of clean, reliable, and affordable energy across Africa. This transformational initiative will contribute to the energy transition and socio-economic development across the continent.”
The project is expected to serve over 68,000 households and reduce energy costs for 7,000 businesses. Increased access to reliable electricity will enhance business productivity, create indirect jobs, and drive economic growth.
