The African Development Bank (AfBD) and PowerGen Renewable Energy (PowerGen) have announced a strategic partnership with leading international investors to create a scalable, distributed renewable energy platform targeting the deployment of 120 MW of renewable power, including advanced battery energy storage solutions, across Africa.
The initiative is a collaboration between PowerGen and key partners: 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).
PIDG’s anchor commitment was made through its investment arm, InfraCo, leveraging concessional capital provided by PIDG Technical Assistance.
SEFA, a multi-donor special fund managed by the African Development Bank, also contributed catalytic finance to unlock private sector investments in renewable energy and energy efficiency.
Building on over 13 years of PowerGen’s expertise in developing, implementing, and operating projects across Africa, the platform aims to deploy a 120 MW portfolio of renewable energy solutions.
Investments to Unlock Transformative Energy Access
The transaction reached its first financial close in January 2025, securing initial funding that will attract additional equity and debt investments later this year. PowerGen is a private sector partner of Power Africa, a U.S. government-led initiative that provided technical assistance to the company and supported funding for ElectriFi and SEFA.
Claire Jarratt, PIDG’s Head of Investment Management for InfraCo, highlighted the significance of the project:
“PIDG has worked with PowerGen in Sierra Leone for years and trusts their ability to deliver high-quality distributed energy infrastructure in challenging environments. This investment represents a transformational step towards achieving sustainable energy access across sub-Saharan Africa.”
Luke Foley, PIDG Deputy Head of Technical Assistance, added:
“This investment reflects PIDG’s mandate to innovate using blended finance tools, combat climate change, and enhance economic resilience in the region.”
Other project stakeholders emphasized the broader impact of the platform:
PowerGen CEO Aaron Cheng expressed optimism about the company’s growth trajectory:
“We are thrilled to drive our vision of clean, reliable, and affordable energy across Africa. This transformational initiative will contribute to the energy transition and socio-economic development across the continent.”
The project is expected to serve over 68,000 households and reduce energy costs for 7,000 businesses. Increased access to reliable electricity will enhance business productivity, create indirect jobs, and drive economic growth.