AfDB, PowerGen join forces with global investors to expand renewable energy in Africa

BY MOTOLANI OSENI

The African Development Bank (AfDB) and PowerGen Renewable Energy have partnered with global investors to launch a transformative initiative aimed at deploying 120 MW of renewable energy across Africa. The project will integrate advanced battery energy storage systems to enhance energy reliability and efficiency.

Key collaborators include the Private Infrastructure Development Group (PIDG), the Danish Investment Fund for Developing Countries (IFU), EDFI Management Company, and the African Development Bank’s Sustainable Energy Fund for Africa (SEFA).

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These partners bring strategic investments and technical expertise to scale the initiative, targeting underserved regions in Nigeria, Sierra Leone, and the Democratic Republic of Congo, with plans for further expansion.

The platform combines PowerGen’s 13 years of experience with innovative financing tools to deploy mini-grids, metro-grids, and commercial and industrial systems. By addressing the needs of communities and businesses, it aims to increase electricity access for over 68,000 households and reduce energy costs for 7,000 enterprises.

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Initial funding, achieved in January 2025, will attract additional investments to drive economic growth and support the energy transition across sub-Saharan Africa.

Project stakeholders, including PIDG, IFU, and EDFI Management Company, have emphasised the importance of this collaboration in fostering climate resilience, creating jobs, and advancing socio-economic development.

PowerGen CEO Aaron Cheng highlighted the project’s potential, stating it represents a significant step towards achieving clean, reliable, and affordable energy across the continent.

The initiative aligns with regional electrification goals, aiming to transform the energy landscape and enhance the economic resilience of Africa’s underserved communities.