PowerGen Nigeria Assets Ltd.

Country

Nigeria

Technology

Hybrid Solar-Battery-Genset

Business model

Minigrid

Investment name: PowerGen Nigeria Assets Ltd.

Contract signature date: July 2021

Total ElectriFI financing:  USD 3 m (EUR 2.55m equivalent)

Website:  https://www.powergen-renewable-energy.com/

Region: West Africa

Country: Nigeria

Sector: Solar PV – battery – diesel genset backup

Allocation: EDFI ElectriFi – Nigeria Country Window

Environmental and Social Category: B
(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk

Project overview:

PowerGen is one of the leading developers in Africa of on-grid and off-grid distributed energy, with offices in Kenya, Nigeria, Sierra Leone, Tanzania, and Benin.  PowerGen has installed more than 3 MW of renewable energy projects across 10 countries and currently serves over 20,000 customers. The company was founded in 2011 with a vision to provide clean, reliable, and affordable electricity to 10 million people by 2030.

Funding objective:

ElectriFI invests in PowerGen Nigeria Assets Ltd alongside Oikocredit and Triodos Investment Management, with the aim of construct 28 rural mini-grids representing 11,000 new connections to electricity in Nigeria. Once operational, the CrossBoundary Energy Access will acquire PowerGen Nigeria Assets Ltd and becoming the long-term owner and providing the construction financiers with an exit.

Why ElectriFI wants to fund this project:

The project contributes to the country rural electrification strategy while generating positive developmental impact as it enables reducing kerosene and diesel consumptions, while bringing high-quality, cost-effective 24/7 AC power to 55,000 people in rural Nigeria, while also having positive environmental and economic impacts.

Environmental and social rationale:

This investment is categorized as B ( medium risk). Activities come with limited adverse risks associated mainly with waste management and labour conditions. IFC Performance Standards 1 to 4 can be triggered. The company has developed an EHS framework which is currently being implemented.