Energy Transaction Brief: IFU invests $15 million in PowerGen

Energy Transaction Brief: IFU invests $15 million in PowerGen

Transaction Summary

The Investment Fund for Developing Countries (IFU) committed $15 million in equity financing to PowerGen Renewable Energy (PowerGen). Founded in 2011, PowerGen is an on-grid and off-grid distributed energy developer with more than 3MW of installed capacity across 10 countries, serving 20,000 customers, and is also a private sector partner of Power Africa, a U.S. government-led partnership that aims to double electricity access in Sub-Saharan Africa. This investment will support the deployment of 120MW of renewable mini-grids, metro-grids, C&I power solutions, and battery storage, benefiting over 68,000 households and 7,000 businesses in the Democratic Republic of the Congo, Nigeria, and Sierra Leone, with plans to expand to other markets. The transaction is a joint investment involving the Private Infrastructure Development Group (PIDG), the EU-funded EDFI ElectriFi, and the African Development Bank’s Sustainable Energy Fund for Africa (SEFA), though their total funding amount remains undisclosed. It also includes additional concessional capital from PIDG Technical Assistance.

Terms

  • Fund Managers: Investment Fund for Developing Countries
  • Target: PowerGen Renewable Energy
  • Financing Type: Equity
  • Investment Strategy: Growth Equity
  • Financing Instrument: Ordinary shares
  • Amount: $15 million

Transaction Rationale

IFU’s investment underscores its commitment to expanding clean energy access in Africa, where 600 million people still lack electricity. Rural areas face the greatest challenge, as extending the national grid is costly for...

  • Market Opportunity: The International Energy Agency projects 90 GW of new renewable capacity in Sub-Saharan Africa by 2030, creating a substantial market for decentralised energy solutions. Nigeria’s off-grid market alone is valued at...
  • Risk/Return Analysis: PowerGen’s extensive network of investors and partners—including IFU, EDFI, and Shell—strengthens its financial resilience and market credibility. Mini-grids, which operate for 15–25 years, offer a stable, long-term energy solution, and the...


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