By Abbas Nazil
PowerGen has raised $50 million in Series C funding to expand renewable energy access across sub-Saharan Africa, with a focus on Kenya, Nigeria, Sierra Leone, and the Democratic Republic of the Congo.
The investment, finalized in January 2025, will support the development of 120 megawatts of renewable energy solutions, including mini-grids, metro-grids, commercial and industrial power systems, and battery storage.
The initiative aims to provide electricity to 68,000 households and reduce energy costs for 7,000 businesses while promoting clean and reliable energy access.
Lead investors in the funding round include InfraCo Africa, IFU, EDFI ElectriFi, and the African Development Bank, reflecting strong institutional support for renewable energy development in the region.
PowerGen plans to leverage its experience operating 16 mini-grids in Nigeria, which currently serve over 12,000 households, to fast-track the deployment of its 120 MW renewable energy platform in Kenya.
The distributed energy systems are designed to generate power close to consumers, eliminating the need for expensive centralized grid extensions and ensuring electricity reaches underserved and remote communities.
Beyond providing electricity, the initiative is expected to create employment opportunities across construction, installation, and ongoing maintenance, while also enabling businesses to expand operations and improve productivity through lower energy costs.
The project aligns with global development goals, supporting United Nations Sustainable Development Goal 7 on affordable and clean energy and Goal 13 on climate action by reducing reliance on diesel generators and kerosene lamps.
PowerGen estimates the initiative will cut approximately 43,581 metric tons of carbon dioxide equivalent emissions annually, contributing to the reduction of greenhouse gases and improving indoor air quality for households.
African Development Bank representatives highlighted that the project will generate economic activity, enhance resilience to climate change, and provide sustainable living conditions for underserved populations.
CEO Aaron Cheng emphasized the company’s vision of providing clean, reliable, and affordable energy at scale across Africa, demonstrating a model for private sector engagement in renewable energy infrastructure.
With this funding, PowerGen is poised to replicate its platform-based approach across multiple countries, bridging the energy access gap for millions of people while supporting economic development and environmental sustainability.
The company’s strategy combines catalytic funding from development institutions with private investments, creating a scalable and financially sustainable model for renewable energy expansion in high-risk markets.
