Renewable energy investment firm All On has committed $5 million to PowerGen Renewable Energy Nigeria Limited to expand mini-grid projects and improve access to reliable electricity across underserved communities in Nigeria. The investment, structured as mezzanine funding, is expected to support the development of both isolated and interconnected mini-grids serving households, businesses and industrial customers.
The $5 million investment in PowerGen Nigeria is projected to deliver up to 6,000 new electricity connections and provide access to power for an estimated 41,000 people. The projects are also expected to add up to 9 megawatts of generation capacity and create approximately 470 jobs across the communities and businesses where the infrastructure will be deployed.
According to All On, the funding completes PowerGen’s Series C capital raise, alongside investments from ElectriFI, Impact Fund Denmark, the Sustainable Energy Fund for Africa (SEFA) and InfraCo. PowerGen already has experience in Nigeria, including the Toto Community Mini Grid Project in Nasarawa State, which has been described as Nigeria’s first interconnected hybrid solar mini-grid.
All On CEO, Caroline Eboumbou, said the investment reflects confidence in PowerGen’s ability to deploy renewable energy solutions in communities and businesses where reliable electricity remains a challenge. She said the additional capital would help the company take its existing model to more parts of Nigeria, while supporting economic activity in areas affected by limited or unreliable power supply.
PowerGen CEO Aaron Cheng said Nigeria remains an important market for the company, adding that the investment will support its efforts to expand access to clean, reliable and affordable electricity. With the new funding, PowerGen is expected to scale both standalone and grid-connected renewable energy projects as private investment continues to play a role in expanding Nigeria’s decentralised energy infrastructure.
source: The guaerdian
