…targets deployment of 120MW of renewable power solutions
The African Development Bank (AfDB) has partnered with PowerGen renewable energy alongside other international investors to establish a scalable, distributed renewable energy platform, targeting the deployment of 120 MW of renewable power solutions, including battery energy storage, across Africa.
The collaboration which is between PowerGen, Private Infrastructure Development Group (PIDG), African Development Bank’s Sustainable Energy Fund for Africa (SEFA), Danish Investment Fund for Developing Countries (IFU), EDFI Management Company, through its EU funded Electrification Financing Initiative (ElectriFi), is aimed to 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.
Commenting on the partnership in a statement issued to journalists, Henrik Henriksen, investment director at IFU noted the need for enabling access to clean energy that can assist underserved households and businesses in Africa to become more resilient to climate change and to provide them with opportunities for better living conditions without further increasing greenhouse gas emissions.
“We are very proud to be a part of a joint investment enabling PowerGen to develop sustainable off-grid power solutions in sub-Saharan Africa. This aligns with our increased focus on supporting Africa’s transition to be more climate resilient,” he added.
For Claire Jarratt, head of Investment Management for InfraCo 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.
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“We are therefore delighted to anchor this new investment. We are pleased to be working with partners to expand its offering across sub-Saharan Africa at a platform scale that has the potential to be truly transformational.”
Initially focused on Nigeria, Sierra Leone, and the Democratic Republic of the Congo (DRC), the platform will be expanded to cover a wider region, with an accelerated efforts to connect the 570 million people across sub-Saharan Africa who currently lack access to electricity.
Also commenting, Daniel Schroth, Director of Renewable Energy and Energy Efficiency Department at the African Development Bank stated that partnership reflects the organisation’s commitment to catalysing private investment in sustainable infrastructure and energy access in line with its objectives.
The project according to him will bring electricity to underserved areas in Nigeria, Sierra Leone, and the DRC, and generate significant economic activity and create numerous employment opportunities.
Aaron Cheng, CEO of PowerGen, said: “We are thrilled to announce this transformational next chapter to drive our vision of providing clean, reliable, and affordable energy across Africa. We are grateful to our terrific partners for their collaboration, and together, we look forward to contributing at scale to the energy transition and socio-economic growth across the continent.”
PowerGen Renewable Energy in Nigeria developed the first mini-grid under the Nigeria Electrification Programme in Rokota, Niger State and also the first interconnected mini-grid in Toto, Nasarawa State. The company now has 16 operational renewable mini-grids across the country providing electricity to over 12,000 households.
PowerGen has also developed Commercial and Industrial Solar hybrid systems on a Power Purchase Agreement with CSS Integrated Farms, Eye Foundation Hospitals, and has over 50MW of C&I projects with leading manufacturing companies in Nigeria at different stages of development.