PowerGen, PIDG, Others Partner to Deploy 120mw Renewable Power Grids

*Energy firm to light up 68,000 households, reduce cost for 7,000 businesses

Emmanuel Addeh in Abuja

PowerGen Renewable Energy (PowerGen) at the weekend announced its partnership with leading international investors to establish a scalable, distributed renewable energy platform, for the deployment of 120mw clean energy power solutions across Africa.

Aside from PowerGen, other partners include: 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 anchor commitment from PIDG was made through the investment arm of InfraCo, its project development solution, with concessional capital provided by PIDG technical assistance.

A statement at the weekend, said with PowerGen building building on its over 13 years of experience developing, implementing, and operating projects across Africa, the funds will support the deployment of the 120mw portfolio of renewable mini/metro-grids as well as 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 now be expanded within the wider region, the statement added.

The first closing of the transaction was reached in January 2025 and will catalyse additional equity and debt finance later this year, PowerGen, a private sector partner of Power Africa, a US government-led partnership, said.

Commenting on the deal, PIDG Head of Investment Management for InfraCo, Claire Jarratt, expressed confidence in its 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,” Jarrett said.

Also, Luke Foley, PIDG Deputy Head of Technical Assistance, added that the partnership builds on PIDG’s innovative use of its blended finance tools and reinforces its dedication to support the deployment of sustainable energy solutions to combat climate change and foster economic resilience.

IFU Investment Director, Henrik Henriksen, said there was the 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,” Henrikson added.

CEO of EDFI Management Company, Rodrigo Madrazo Garcia de Lomana, stated: “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.”

PowerGen Renewable Energy in Nigeria developed the first mini-grid under the Nigeria Electrification Programme in Rokota, Niger State and also the first interconnected mini-grid in Toto, Nasarawa State.

It now has 16 operational renewable mini-grids across the country providing electricity to over 12,000 households. PowerGen has also developed Commercial and Industrial Solar hybrid systems on a Power Purchase Agreement with CSS Integrated Farms, Eye Foundation Hospitals, and has over 50mw of C&I projects with leading manufacturing companies in Nigeria at different stages of development.

In his remarks, Dr. Daniel Schroth, Director of the Renewable Energy and Energy Efficiency Department at the African Development Bank (AfDB), said the bank’s contribution to the platform reflects its 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,” he said.

With funding secured, PowerGen said it is well-positioned to serve the energy needs of more than 68,000 households and reduce the cost of power for 7,000 businesses, noting that increasing access to reliable and affordable electricity is expected to enhance business productivity, create indirect jobs, and drive economic growth.

“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,” Aaron Cheng, CEO of PowerGen, said.