PowerGen Partners to Scale Renewable Energy Across Africa
Deal News | Jan 27, 2025 | Phoenicia Group Libya LLC
PowerGen Renewable Energy, supported by a consortium of investors including the Private Infrastructure Development Group (PIDG), Danish Investment Fund for Developing Countries (IFU), EDFI Management Company, and the African Development Bank's SEFA, is launching a renewable energy platform to deploy 120 MW of power across Africa. This initiative focuses on deploying renewable mini-grids and commercial and industrial power solutions, initially targeting Nigeria, Sierra Leone, and the Democratic Republic of the Congo (DRC). The project aims to provide electricity to underserved areas and create economic opportunities. The platform approach will leverage PowerGen's extensive experience and pipeline to expand energy access, potentially impacting up to 570 million people currently lacking electricity in sub-Saharan Africa. The first transaction closure is scheduled for January 2025, with further equity and debt financing expected later in that year. This collaboration highlights the strategic partnerships and blended financing aimed at transforming Africa's energy landscape through sustainable solutions.
Sectors
- Renewable Energy
- Infrastructure Development
- Investment and Finance
Geography
- Africa – The primary focus of the renewable energy platform is to enhance electricity access across Africa, specifically in Nigeria, Sierra Leone, and the Democratic Republic of the Congo.
Industry
- Renewable Energy – The article discusses the deployment of renewable energy solutions across Africa, including solar power and battery energy storage.
- Infrastructure Development – The initiative involves building distributed energy systems such as mini-grids and enhancing infrastructure in sub-Saharan Africa.
- Investment and Finance – Multiple international investors and financial groups are involved, focusing on deploying catalytic finance for energy projects in emerging markets.
Financials
- 120 MW – The capacity of renewable energy to be deployed through the platform.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| PowerGen Renewable Energy | Target Company | Company | A private company focused on providing distributed renewable energy solutions in Africa. |
| Private Infrastructure Development Group (PIDG) | Investor | Company | An organization investing in infrastructure projects in developing countries to encourage long-term economic growth. |
| Danish Investment Fund for Developing Countries (IFU) | Investor | Company | An investor supporting private sector development in developing countries with a focus on sustainable projects. |
| EDFI Management Company | Investor | Company | A company managing EU-funded initiatives to support electrification and renewable energy in developing regions. |
| African Development Bank's Sustainable Energy Fund for Africa (SEFA) | Investor | Company | A multi-donor special fund aimed at boosting private sector investments in renewable energy across Africa. |