Pending contracting: This investment proposal has received final approval and now is entering into the contracting phase. This disclosure will remain on line during 30 days, after which it will be removed automatically.
Investment Name: PowerGen
Region: Sub Saharan Africa
Sector: Solar PV – battery – diesel genset backup
Sponsor’s website: https://www.powergen-renewable-energy.com/
Total ElectriFI Financing: USD 2m
Environmental and Social Category: B
(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk
Project overview: Founded in 2011, PowerGen is one of the leading solar electricity mini-grid developers active in East Africa. PowerGen is actively serving over 10,000 customers (approximately 50,000 people and ultimate beneficiaries) across Kenya and Tanzania with 24/7, AC power through 90+ sites. The company employs over 120 full time staff and has 4 offices/warehouses across these 2 countries. ElectriFI will provide a portion of the financing required to reach profitability and to grow the customer base up to over 100k connections, equalling access to electricity to more than 500k people. PowerGen is expected to create ~100 additional new jobs toward 2022.
Funding objective and impact: ElectriFI will subscribe to USD 2mln equity to the holding company out of a larger round. The round will fund operations over the next 3 years to grow scale and reach profitability while the company will fund specific projects by raising project financing across different countries in sub-Saharan Africa.
Why EDFI ElectriFI wants to fund this project: ElectriFI is supportive of PowerGen business model as it contributes to positive developmental impact as it enables reducing kerosene and diesel consumptions, while bringing high-quality, cost-effective 24/7 AC power to BoP households, while also having positive environmental and economic impacts.
Environmental and social rationale:
This investment is categorised as B.
Activities come with potential limited adverse risks associated with waste management and labour conditions. IFC Performance Standards 1 to 4 may be triggered. If so, risks and impacts will be addressed accordingly through EHS management plans and procedures.