- Solar PV
- Business model
ElectriFI subscribed to a USD 2 million investment to a capital increase of PowerGen, one of the leading electricity mini grid developer in East Africa. PowerGen aims to connect one million more people to reliable electricity over the next 5 years.
Countries: Kenya and Tanzania
Total ElectriFI financing: USD 2m
Environmental and Social Category: B
(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk
Brief description of the client and project: Founded in 2011, PowerGen Renewable Energy is one of the leading solar electricity mini-grid developers active in East Africa. PowerGen aims to make clean, renewable energy accessible to more people in Africa and is currently serving over 10,000 customers 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 provides a portion of the financing required to reach profitability and to grow the customer base up to over 100,000 connections, allowing electricity access to more than 500,000 people. PowerGen is expected to create 100 additional new jobs toward 2022.
Funding objective: ElectriFI subscribed to USD 2m equity to the holding company out of a larger round. ElectriFI’s investment is part of a Series B investment together with Shell’s New Energies business, Omidyar Network, Acumen, Renewable Energy Performance Platform (REPP), Sumitomo Corporation, DOB Equity, and Micro-grid Catalytic Capital Partners. 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 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, affordable and reliable electricity to ‘bottom of the pyramid’ households, while also having positive environmental and economic impacts.
PowerGen at a glance
- Number of beneficiaries
- Annual output (MWh/y)
- GHG avoidance (tCO2eq/y)
- PowerGen Renewable Energy
- Financing instrument
- USD 2m
- Kenya and Tanzania
- Solar PV
- Business Model
- ElectriFI global