AfDB Partners with PowerGen and Global Investors to Launch 120 MW Renewable Energy Platform in Africa
The African Development Bank (AfDB) and PowerGen Renewable Energy have joined forces with prominent international investors to launch a transformative renewable energy platform designed to deploy 120 MW of clean power across Africa. This initiative, which includes cutting-edge battery energy storage systems, aims to accelerate electrification in underserved communities across the continent.
Key Collaborators Driving Change
The partnership brings together a coalition of influential stakeholders, including 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 AfDB’s Sustainable Energy Fund for Africa (SEFA). PIDG’s investment arm, InfraCo, played a pivotal role by committing anchor funding using concessional capital, while SEFA provided catalytic finance to unlock private sector investments in renewable energy and energy efficiency.
Focused Deployment Strategy
PowerGen will utilize its expertise in developing, implementing, and managing renewable energy projects. The platform will focus on mini-grids, metro-grids, and commercial and industrial (C&I) systems enhanced with battery storage. Initial deployment will target Nigeria, Sierra Leone, and the Democratic Republic of Congo (DRC), with plans for broader expansion. By employing a scalable platform approach, the initiative aims to address the pressing energy access needs of sub-Saharan Africa, where over 570 million people currently live without electricity.
Financial Milestones and Future Growth
The project reached its first financial close in January 2025, securing initial funding, with further equity and debt investments expected later this year. As a partner in the U.S. government-led Power Africa initiative, PowerGen has been instrumental in advancing renewable energy projects, supported by ElectriFi and SEFA.
Endorsements and Anticipated Impact
Project stakeholders underscored the initiative’s potential to transform energy access in Africa:
- Claire Jarratt, Head of Investment Management at InfraCo, highlighted its role in delivering sustainable energy to underserved regions.
- Henrik Henriksen, Investment Director at IFU, emphasized the importance of clean energy solutions for improving livelihoods.
- Dr. Daniel Schroth, AfDB’s Director of Renewable Energy and Energy Efficiency, noted the platform’s ability to attract private investments and boost economic activity.
A Catalyst for Africa’s Energy Transition
PowerGen CEO Aaron Cheng expressed optimism about the platform’s potential to drive Africa’s energy transition and socio-economic development. The initiative is expected to benefit over 68,000 households and lower energy costs for 7,000 businesses, fostering productivity and economic growth across the continent.
This renewable energy platform not only addresses Africa’s urgent energy needs but also sets the stage for long-term growth, sustainability, and equitable access to clean energy.
