PowerGen Renewable Energy, a Nairobi-based microgrid company, is delivering the project in partnership with the Private Infrastructure Development Group and the Danish Investment Fund for Developing Countries. EDFI Management Co. is also supporting the effort through its Electrification Financing Initiative, funded by the European Union and the African Development Bank's Sustainable Energy Fund for Africa.
The investment will support the deployment of a 120 MW portfolio of renewable minigrids and metro grids and commercial and industrial energy solutions, including battery energy storage.
The platform, initially focused on Nigeria, Sierra Leone and the Democratic Republic of Congo, will then expand across the continent, aiming to accelerate efforts to connect people in sub-Saharan Africa who currently lack access to electricity.
PowerGen said the first closing of the transaction was achieved this month and will catalyze additional equity and debt financings later this year.
A statement from the company adds that with the funding secured, it is “well positioned to meet the energy needs of more than 68,000 households and reduce the cost of electricity for 7,000 businesses.”
Earlier this month, the government of Sierra Leone shared its plans to incentivize private developers to install minigrids across the country.
