African Development Bank and Partners Launch Major Renewable Energy Initiative

In a significant move towards enhancing clean energy access across Africa, the African Development Bank (AfDB), PowerGen Renewable Energy, and several international partners have launched a transformative renewable energy platform. This initiative aims to deploy 120 MW of renewable power, including battery energy storage solutions, across the continent.

The platform is a collaboration between PowerGen, 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 AfDB’s Sustainable Energy Fund for Africa (SEFA). The anchor commitment from PIDG was made through InfraCo, its investment arm, with concessional capital provided by PIDG Technical Assistance.

Building on PowerGen’s thirteen-plus years of experience developing, implementing, and operating projects across Africa, the funds will support the deployment of a 120MW portfolio of renewable mini-/metro-grids and commercial and industrial (C&I) power solutions, inclusive of battery energy storage. Initially focused on Nigeria, Sierra Leone, and the Democratic Republic of the Congo (DRC), the platform will be expanded within the wider region, leveraging PowerGen’s deep pipeline in combination with local developer and engineering, procurement, and construction (EPC) partnerships.

Adopting a platform approach has the potential to accelerate efforts to connect the 570 million people across sub-Saharan Africa who currently lack access to electricity, according to data from IRENA. The first closing of the transaction was reached in January 2025 and will catalyze additional equity and debt finance later this year.

Dr. Daniel Schroth, Director of Renewable Energy and Energy Efficiency at the African Development Bank, said “The African Development Bank’s contribution to PowerGen’s platform reflects our commitment to catalyzing private investment in sustainable infrastructure and energy access in line with the objectives of Mission 300. This project will bring electricity to underserved areas in Nigeria, Sierra Leone, and the DRC, and generate significant economic activity and create numerous employment opportunities. It’s an excellent example of our strategy to drive development through targeted partnerships.”

PIDG’s Head of Investment Management for InfraCo, Claire Jarratt, said “PIDG has worked with PowerGen for a number of years in Sierra Leone, and we are confident in their ability to develop, deliver and operate high-quality distributed energy infrastructure in challenging conditions. We are therefore delighted to anchor this new investment. We are pleased to be working with partners to support PowerGen to expand its offering across sub-Saharan Africa at a platform scale that has the potential to be truly transformational.”

IFU Investment Director, Henrik Henriksen, said: “There is a tremendous need for enabling access to clean energy that can assist underserved households.”

Sources: 

[1] African Development Bank, PowerGen, and Partners Launch Transformative Renewable Energy Platform to Scale Clean Energy Access Across the Continent   https://www.zawya.com/en/press-release/africa-press-releases/african-development-bank-powergen-and-partners-launch-transformative-renewable-energy-platform-to-scale-clean-naktvwdi

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