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The African Development Bank (AfDB) and PowerGen Renewable Energy have announced a strategic partnership with leading international investors to create a scalable renewable energy platform aimed at deploying 120 MW of renewable power across Africa. The initiative, which also includes advanced battery energy storage solutions, seeks to accelerate electrification efforts in underserved African communities. The collaboration involves key partners: the Private Infrastructure Development Group (PIDG), the Danish Investment Fund for Developing Countries (IFU), EDFI Management Company (via its EU-funded Electrification Financing Initiative, ElectriFi), and AfDB’s Sustainable Energy Fund for Africa (SEFA). PIDG’s investment arm, InfraCo, made an anchor commitment, utilizing concessional capital to facilitate the project. SEFA also contributed catalytic finance to help unlock private sector investments in renewable energy and energy efficiency. PowerGen will leverage its expertise in developing, implementing, and operating renewable energy projects across Africa, focusing on mini-grids, metro-grids, and commercial and industrial (C&I) systems, all enhanced with battery storage. The platform will initially target Nigeria, Sierra Leone, and the Democratic Republic of Congo (DRC), with plans to expand further. By adopting a platform approach, the project is set to drive transformative change in sub-Saharan Africa, where over 570 million people lack access to electricity. The project reached its first financial close in January 2025, securing initial funding, with further equity and debt investments expected later this year. PowerGen, a partner of the U.S. government-led Power Africa initiative, has been instrumental in advancing the initiative with support from ElectriFi and SEFA. Project stakeholders expressed their support for the initiative’s broader impact. Claire Jarratt, Head of Investment Management for InfraCo at PIDG, emphasized the significance of the project in providing sustainable energy access to sub-Saharan Africa. Henrik Henriksen, Investment Director at IFU, noted the importance of clean energy solutions for underserved communities, while Dr. Daniel Schroth, AfDB’s Director of Renewable Energy and Energy Efficiency, stressed the project’s role in catalyzing private investment and generating economic activity. PowerGen CEO Aaron Cheng expressed optimism about the company’s growth potential, stating that the project will contribute to Africa’s energy transition and socio-economic development. The platform is expected to benefit over 68,000 households and reduce energy costs for 7,000 businesses, driving productivity and economic growth across the continent. |
