Renewable-energy company PowerGen Renewable Energy (PowerGen) has partnered with international investors to establish a scalable, distributed renewable-energy platform targeting the deployment of 120 MW of renewable power, including battery energy storage solutions, across Africa.

Adopting a platform approach has the potential to accelerate efforts to connect the 570-million people across sub-Saharan Africa who currently lack access to electricity.

The first closing of the transaction was reached this month and will catalyse additional equity and debt finance later this year, the company said.

The platform is a collaboration between PowerGen and the Private Infrastructure Development Group (PIDG), the Danish Investment Fund for Developing Countries, EDFI Management Company, through its EU-funded Electrification Financing Initiative, and the African Development Bank’s (AfDB’s) Sustainable Energy Fund for Africa (SEFA).

The anchor commitment for the platform from PIDG was made through InfraCo, its investment arm, with concessional capital provided by PIDG Technical Assistance.

SEFA is a multidonor special fund managed by the AfDB that provides catalytic finance to unlock private-sector investment in renewable energy and energy efficiency.

The funds will support the deployment of a 120 MW portfolio of renewable mini-/ metro-grids and commercial and industrial power solutions, inclusive of battery energy storage, that builds on PowerGen’s 13 years of experience developing, implementing and operating projects across Africa.

The platform will initially focus on Nigeria, Sierra Leone and the Democratic Republic of Congo (DRC), although it will be expanded within the wider region, leveraging PowerGen’s pipeline in combination with local developer and engineering, procurement and construction partnerships, 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 partners for their collaboration and look forward to contributing at scale to the energy transition and socioeconomic growth across the continent,” said PowerGen CEO Aaron Cheng.

With funding secured, PowerGen is well-positioned to serve the energy needs of more than 68 000 households and reduce the cost of power for 7 000 businesses. Increasing access to reliable and affordable electricity is expected to enhance business productivity, create indirect jobs and drive economic growth, he said.

“The AfDB’s contribution to PowerGen’s platform reflects our commitment to catalysing private investment in sustainable infrastructure and energy access in line with the objectives of Mission 300,” said AfDB renewable energy and energy efficiency director Dr Daniel Schroth.

“This project will bring electricity to underserved areas in Nigeria, Sierra Leone and the DRC, and generate significant economic activity and create numerous employment opportunities. “It’s an excellent example of our strategy to drive development through targeted partnerships,” he said.