African Development Bank, PowerGen, and Partners Launch Renewable Energy Platform to Boost Clean Energy Access in Africa
PowerGen Renewable Energy (PowerGen), in collaboration with leading international investors, has launched a scalable, distributed renewable energy platform to deploy 120 MW of renewable power across Africa.
This initiative aims to provide clean energy solutions, including battery energy storage systems, to underserved communities.
The partnership includes 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 platform’s anchor investment from PIDG was made via InfraCo, its investment arm, with concessional funding provided by PIDG Technical Assistance.
PowerGen, leveraging over thirteen years of experience in Africa’s energy sector, will focus initially on Nigeria, Sierra Leone, and the Democratic Republic of the Congo (DRC), with plans to expand further.
The platform’s platform approach is expected to accelerate efforts to connect the 570 million people in sub-Saharan Africa who lack access to electricity, according to the International Renewable Energy Agency (IRENA).
The first closing of the transaction took place in January 2025, paving the way for additional equity and debt financing later in the year. PowerGen, a private sector partner of Power Africa, has benefited from technical assistance from the U.S. government-led initiative and previous funding from ElectriFi and SEFA.
Claire Jarratt, PIDG’s Head of Investment Management for InfraCo, expressed confidence in PowerGen’s capabilities, stating: “We are delighted to anchor this investment and work with partners to support PowerGen in expanding its energy solutions across sub-Saharan Africa at a transformational scale.”
Henrik Henriksen, IFU Investment Director, emphasized the importance of clean energy access, saying: “This investment will enable PowerGen to provide sustainable off-grid power solutions, supporting climate resilience and economic opportunities in Africa.”
Rodrigo Madrazo Garcia de Lomana, CEO of EDFI Management Company, highlighted the catalytic impact of early-stage funding, noting: “Our initial investment in 2019 paved the way for this significant funding round, showcasing the ripple effect of our early commitment.”
Dr. Daniel Schroth, Director of Renewable Energy and Energy Efficiency at the African Development Bank, said: “Our contribution to PowerGen’s platform aligns with our mission to catalyze private investment and expand energy access, driving economic growth and employment opportunities.”
Aaron Cheng, CEO of PowerGen, expressed enthusiasm for the partnership, stating: “We are thrilled to drive our vision of providing clean, reliable, and affordable energy across Africa with the support of our partners.”
With funding secured, PowerGen is set to serve over 68,000 households and reduce power costs for 7,000 businesses, fostering economic productivity, job creation, and sustainable growth in the region.
Distributed by APO Group on behalf of the African Development Bank Group (AfDB).
