PowerGen

Success of Series B funding round in 2019 has led to the connection of just under 120,000 people to affordable modern electricity for the first time.

Nearly 120,000 people have so far been connected to affordable modern energy through this project by one of Africa’s leading private utilities.

PowerGen Renewable Energy (PowerGen) completed a successful Series B round in November 2019, which drew funding from eight investors, including USD 2m in equity from REPP. The other seven were Shell’s New Energies business, Sumitomo Corporation, Omidyar Network, Acumen, EDFI ElectriFI, DOB Equity, and Micro-grid Catalytic Capital Partners.

PowerGen is one of the pioneers building and managing smart renewable energy mini-grids, which deliver clean, affordable and reliable electricity to underserved people in Africa.  The company’s “smart grid” approach involves:

  1. A clean grid that utilises distributed renewable energy (DRE) and displaces diesel generation
  2. A holistic systems-based approach to network planning by integrating the best of on-grid and off-grid technologies
  3. A software-based, data-driven approach powered by real-time analytics and controls to drive operational excellence
  4. A customer-centric approach that provides reliable power with productive use support (such as e-mobility and electric cooking) to provide an excellent customer experience to all

Following the closing of the Series B fundraise, PowerGen has installed 4.57MW of renewable energy capacity through 105 mini-grids. These mini-grids are providing electricity access for the first time to nearly 120,000 people across Nigeria, Kenya, Sierra Leone and Tanzania, as well as over 2,200 micro-businesses.

The company is scaling up its productive use programmes that enhance the quality of life of its customers, including electric cooking, cold storage, and agro-processing.

Back in 2016, REPP provided early-stage funding assistance and support that has helped the company position itself at the forefront of the off-grid sector in Tanzania and Kenya.

REPP’s support during PowerGen’s latest fundraise was key to crowding-in additional funding from private investors, enabling the company to reach its fundraising target.

Funding structure

Contracted date: 17 January 2020

Lending type: Equity

REPP funding: USD 2 million

REPP is one of PowerGen’s longest-term partners and has a deep understanding of the mini-grid business from both a corporate and project finance perspective. We are thrilled to have them as an equity investor in PowerGen and to work together with their experienced team to continue building the private utility sector in Africa.
- Sam Slaughter, Co-founder and former CEO, PowerGen Renewable Energy
Technology:

Solar PV mini-grids

Solar PV mini-grids
Project type:

Off-grid

Offtaker:

Off-grid communities

Location:

Kenya, Nigeria, Sierra Leone, Tanzania

ARC Power mini-grids in Rwanda provide clean energy solution

Greenhouse gas emissions avoided: 43,581 tCO2e per year (target) / 2,902 tCO2e (achieved, cumulative)

REPP supports connecting communities to electricity for the first time

People with first-time energy access: 480,000 (target) / 119,637 (achieved)

Planned capacity: 19.9MWp (target) / 4.57MWp (achieved)

Relevant SDGs
Country policy alignment

Supports GHG emission reduction targets of all target countries. Strongly aligned with Nigeria’s aim to deliver energy access through a combination of centralised and decentralised approaches. Supports Sierra Leone’s conditional 95% by 2030 electrification target (Updated NDC, 2021) and Tanzania’s 60% electrification by 2026 target (National Five-Year Development Plan 2021/22-2025/26).