Market transformation
The initiative is expected to improve the overall commercial viability of mini-grids through a demonstration effect, attracting new private investment into the sector.
| Company | PowerGen Renewable Energy (PowerGen) |
| Sector | Power and Energy |
| Country | Nigeria, Sierra Leone, Democratic Republic of the Congo (DRC) |
| Total Project Cost | USD 60m |
| PIDG Commitment |
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| Dates of PIDG involvement |
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Enabling the transition to renewable energy is a critical pathway to addressing the global climate crisis, whilst clean energy access also underpins delivery of several UN Sustainable Development Goals. Despite the need, challenges persist for developers of decentralised renewables across sub-Saharan Africa as they seek to access sufficient finance, and the strategic partnerships required to accelerate access to clean power at scale. This is due to several factors, including small project sizes, overall capital availability in the market, perceived risks, a lack of appropriate regulatory frameworks, and the need for subsidies in a growing sector.
PIDG acted as lead investor in PowerGen’s Renewable Energy Platform designed to expand access to mini-grids, metro grids and energy solutions to power commercial and industrial (C&I) activity across Nigeria, Sierra Leone, and the Democratic Republic of the Congo (DRC). PIDG also committed concessional capital. The investment catalysed further finance, enabling PowerGen to develop, build, own, and operate a platform of renewable energy projects on the continent.
The investment enables PowerGen to expand its model into new jurisdictions, delivering a total of c. 22,984 new connections for households, businesses, and C&I customers, and benefitting 115,000 people.
The initiative is expected to improve the overall commercial viability of mini-grids through a demonstration effect, attracting new private investment into the sector.
Solar off-grid supports the global transition to renewables. Efforts will be taken to ensure climate-resilience of the infrastructure itself and to implement solutions to conserve and enhance site biodiversity, as appropriate.
Anchored by PIDG, the initiative has mobilised additional private sector and development finance.
It is anticipated that access to clean power will lead to an associated increase in productivity, indirect job creation, and economic growth. A mix of C&I and domestic customers will enable PowerGen to de-risk the initiative and pursue a more commercial trajectory.
