A new funding platform targeting the deployment of 120 megawatts of renewable power, coupled with battery energy storage, has been launched in Africa, backed by the African Development Bank (AfDB) and other international investors. The initiative aims to accelerate electrification efforts across the continent, where an estimated 570m people lack access to electricity, according to the International Renewable Energy Agency (IRENA).

PowerGen Renewable Energy, an Africa-focused distributed energy company, has partnered with the Private Infrastructure Development Group (PIDG), the Danish Investment Fund for Developing Countries (IFU), EDFI Management Company, and the AfDB’s Sustainable Energy Fund for Africa (SEFA) to establish the platform.

The anchor commitment from PIDG was made through InfraCo, its investment arm, with concessional capital provided by PIDG Technical Assistance. SEFA, a multi-donor fund managed by the AfDB, provides catalytic finance to unlock private sector investment in renewable energy and energy efficiency projects.

The platform will support the development of mini- and metro-grids, as well as commercial and industrial (C&I) power solutions, all incorporating battery storage. The initial focus will be on Nigeria, Sierra Leone, and the Democratic Republic of Congo (DRC), with plans to expand across the wider region, leveraging PowerGen’s existing project pipeline and partnerships with local developers and engineering, procurement and construction (EPC) companies.

“The African Development Bank’s contribution to PowerGen’s platform reflects our commitment to catalysing private investment in sustainable infrastructure and energy access,” said Dr Daniel Schroth, Director of Renewable Energy and Energy Efficiency at the AfDB. He added that the project aligns with the bank’s “Mission 300” initiative, which aims to connect 300 million people to electricity by 2030. “This project will bring electricity to underserved areas… and generate significant economic activity and create numerous employment opportunities.”

The inclusion of battery storage is crucial for ensuring grid stability and reliability, particularly for intermittent renewable energy sources like solar and wind. This technology allows for the storage of excess energy generated during peak production periods, which can then be dispatched during periods of high demand or low generation.

Claire Jarratt, PIDG’s Head of Investment Management for InfraCo, highlighted PowerGen’s track record in developing and operating energy infrastructure in challenging environments. “We are confident in their ability to develop, deliver and operate high-quality distributed energy infrastructure,” she said.

The investment comes as Africa grapples with a significant energy deficit, hindering economic development and social progress. Distributed renewable energy solutions, like those being deployed by PowerGen, offer a viable alternative to extending centralised grid infrastructure, particularly in remote and rural areas.

Henrik Henriksen, Investment Director at IFU, emphasised the need for clean energy access to help African households and businesses become more resilient to climate change. “We are very proud to be a part of a joint investment enabling PowerGen to develop sustainable off-grid power solutions,” he said.

EDFI Management Company, which first invested in PowerGen in 2019, also participated in this latest funding round. “Our initial investment… has proven to be truly catalytic, paving the way for this significant funding round,” said Rodrigo Madrazo Garcia de Lomana, CEO of EDFI Management Company.

The first closing of the transaction was reached in January 2025, with plans to catalyse additional equity and debt financing later in the year. PowerGen estimates that the funding will enable it to serve the energy needs of more than 68,000 households and reduce power costs for 7,000 businesses, boosting productivity, creating jobs, and driving economic growth.

The involvement of multilateral development banks, development finance institutions, and private investors in this platform underscores the growing recognition of the crucial role that distributed renewable energy and battery storage can play in addressing Africa’s energy challenges. It also signals a shift towards more sustainable and resilient energy systems across the continent. The funding will be key in solving renewable energy problems in Africa, including those related to battery energy storage.