PowerGen Nigeria Assets Ltd.
- Hybrid Solar-Battery-Genset
- Business model
Investment name: PowerGen Nigeria Assets Ltd.
Contract signature date: July 2021
Total ElectriFI financing: USD 3 m (EUR 2.55m equivalent)
Region: West Africa
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
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.
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.