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All On invests $5m in PowerGen to expand renewable electricity access in Nigeria.
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Investment targets 6,000 new electricity connections and 41,000 beneficiaries.
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Projects expected to deliver up to 9MW generation capacity and create about 470 jobs.
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PowerGen to scale standalone and interconnected mini-grid projects across underserved communities.
September 15, (THEWILL) – Renewable energy impact investment company, All On, has invested $5 million in PowerGen Renewable Energy Nigeria Limited to accelerate the deployment of mini-grid projects and expand access to reliable electricity across Nigeria.
The investment, structured as a mezzanine facility, will support the development of isolated and interconnected mini-grid projects serving households, commercial and industrial customers in communities with limited or unreliable access to electricity.
All On said the investment is expected to support up to 6,000 electricity connections and reach an estimated 41,000 beneficiaries, while enabling up to 9 megawatts of generation capacity and delivering more than 17 MW+ MWh in combined energy impact. The projects are also expected to create approximately 470 jobs across the communities and businesses served.
The Chief Executive Officer of All On, Caroline Eboumbou, said the investment would enable PowerGen to deepen its footprint in Nigeria and expand renewable energy infrastructure for customers with limited or unreliable access to electricity.
Eboumbou said the investment effectively completes the Series C capital raise by PowerGen’s parent company, WindGen Power USA Inc., alongside capital provided by ElectriFI, Impact Fund Denmark, the Sustainable Energy Fund for Africa (SEFA) and InfraCo.
She said PowerGen’s experience in Nigeria included the development of interconnected renewable energy infrastructure, including the Toto Community Mini Grid Project in Nasarawa State, which she described as Nigeria’s first interconnected hybrid solar mini-grid.
“PowerGen has demonstrated that renewable energy solutions can be efficiently deployed to serve communities and businesses where reliable electricity remains a challenge. This investment reflects our confidence in the company’s ability to build on that experience and take its model further across Nigeria.
“For us, it is about backing a proven platform with the capital it needs to expand access to reliable power, while creating the conditions for more businesses and communities to participate in Nigeria’s economic growth”, Eboumbou said.
Also speaking, Investment Manager at All On, Oluseye Bassir, said PowerGen’s experience across different renewable energy models was a major factor behind the investment, adding that its interconnected mini-grid model could be replicated in other parts of Nigeria.
Bassir said the additional capital would help PowerGen move more renewable energy projects from development into delivery, describing actual project delivery as the point at which real impact was created.
Reacting to the investment, Chief Executive Officer of PowerGen, Aaron Cheng, said the funding was a strong endorsement of the company’s capacity to deliver reliable renewable power at scale.
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“All On’s investment is a strong endorsement of PowerGen’s platform and our ability to deliver reliable renewable power at scale. Nigeria remains an important market for PowerGen, and this investment will support our continued growth and our mission to expand access to reliable, affordable and clean energy”, Cheng said.
He added that PowerGen was pleased to welcome All On as a strategic investor and would work with the company to accelerate the deployment of renewable energy across Nigeria.
PowerGen operates renewable energy and distribution utility projects in Kenya, Nigeria, Sierra Leone and the Democratic Republic of Congo, while All On Partnerships for Energy Access is an independent impact investment company seeded by Shell to catalyse the growth of Nigeria’s off-grid energy market.
