The African Development Bank (AfDB), PowerGen Renewable Energy (PowerGen) and several leading international investors have launched a new renewable energy platform that aims to transform energy access in Africa. This ambitious project will have a direct impact on the 570 million people in sub-Saharan Africa who still do not have access to electricity, according to the International Renewable Energy Agency (IRENA).
A strategic partnership for massive deployment of renewable energy
The platform, which is based on a scalable and distributed approach, aims to deploy 120 megawatts (MW) of renewable energy across the continent. This includes innovative battery energy storage solutions, which will complement the renewable energy supply and ensure long-term reliability. This project is a collaboration between PowerGen and several renowned players, such as the Private Infrastructure Development Group (PIDG), the Danish Investment Fund for Developing Countries (IFU), EDFI Management Company via its Electrification Financing Initiative (ElectriFi), funded by the European Union, and the Sustainable Energy Fund for Africa (SEFA) of the African Development Bank.
The role of each partner in this visionary project
PIDG provided strategic engagement by supporting the project through InfraCo, its investment arm. Concessional capital provided by PIDG technical assistance will support projects for mini-grids and energy solutions for the commercial and industrial (C&I) sectors, including battery energy storage. The AfDB’s Sustainable Energy Fund for Africa (SEFA), a multi-donor fund, also plays a key role in facilitating private investment in the renewable energy and energy efficiency sectors.
Renewable energy projects adapted to local needs
With over 13 years of experience in developing renewable energy projects across Africa, PowerGen will be a major player in the implementation of these projects. Initially, the platform will focus on Nigeria, Sierra Leone and the Democratic Republic of Congo (DRC), but eventually it will be expanded across the continent, leveraging PowerGen’s broad project pipeline and its local partnerships for the development and construction of energy infrastructure.
An innovative economic model for a lasting impact
This innovative platform approach enables optimized management of large-scale renewable energy projects, thereby promoting a rapid and sustained energy transition on the continent. According to experts, this model could help meet the energy needs of 68,000 households and reduce the cost of electricity for 7,000 businesses. This transition to clean energy is also expected to generate a wide range of economic opportunities, boost business productivity, create indirect jobs and promote sustainable economic growth.
Strategic support to accelerate access to clean energy
-PowerGen, a key partner of Power Africa, also benefits from technical assistance and financial support from investment programs such as ElectriFi and SEFA, which have already supported the development of the energy sector in Africa. The aim is to increase energy projects across the continent to provide a reliable, affordable and clean solution to underserved populations, without compromising efforts to combat climate change.
Partners’ reactions to the launch of the project
Claire Jarratt, Head of Investments at InfraCo, expressed confidence in PowerGen’s ability to succeed in challenging conditions and develop high quality distributed energy infrastructure. According to her, this investment has transformational potential for sub-Saharan Africa. Luke Foley, PIDG Deputy Director of Technical Assistance, highlighted the importance of using blended finance to support sustainable energy solutions that are essential for both combating climate change and economic resilience.
Henrik Henriksen, IFU chief investment officer, added that access to clean energy will enable underserved populations to adapt to climate change while reducing greenhouse gas emissions. Finally, Rodrigo Madrazo Garcia de Lomana, CEO of EDFI Management Company, mentioned that their initial investment in PowerGen in 2019 was instrumental in the success of this project.
The African Development Bank: a driver of energy change in Africa
Daniel Schroth, Director of the Renewable Energy Department at the African Development Bank, stressed that the AfDB’s commitment to this project reflected its desire to catalyze private investment in sustainable infrastructure. He also clarified that this project will directly contribute to the electrification of remote areas of Nigeria, Sierra Leone and the DRC, thereby creating economic opportunities and jobs for thousands of people.
An important step towards the energy transition
PowerGen looks forward to continuing its mission with its partners and realizing its vision of an Africa powered by clean, reliable and affordable energy. Aaron Cheng, CEO of PowerGen, expressed his gratitude to the partners and added that together, they will significantly contribute to the continent’s energy transition and its socio-economic growth.
Moctar FICUU / VivAfrik
