Energy Crisis: Firm Invests $5m To Overhaul Nigeria’s Power Infrastructure

Determined to compliment the federal government’s efforts at stabilizing electricity supply in Nigeria, a Renewable Energy firm, All On (AO), has committed $5 million USD aimed at boosting electricity access for millions of households in the country.

The intervention, LEADERSHIP learnt, is part of the company’s efforts to bridge the electricity access gap in Nigeria in line with the ongoing PowerGen Renewable Energy Nigeria Limited (PowerGen) initiative.

PowerGen, according to the stakeholders, is a leading renewable energy platform across Africa, with offices in four countries including Kenya, Nigeria, Sierra Leone and the Democratic Republic of Congo (DRC), with the core mandate to “operate renewable energy and distribution utility projects to deliver clean, reliable, and affordable power.”

According to the management in a communque made available to Journalists in Uyo, the Akwa Ibom State capital, “the project came through a mezzanine investment to support the development of isolated and interconnected mini-grid projects serving households, commercial and industrial customers across Nigeria.

“The investment will enable PowerGen to deepen its footprint in Nigeria and expand the deployment of renewable energy infrastructure for customers with limited or unreliable access to electricity,” the firm’s Chief Executive Officer (CEO), Caroline Eboumbou, explained.

“The investment in renewable energy will effectively close the Series C capital raise by PowerGen’s parent company, WindGen Power USA Inc., alongside capital provided by ElectriFI, Impact Fund Denmark, the Sustainable Energy Fund for Africa (SEFA) and InfraCo,” she added.

Eboumbou, stated further that “PowerGen’s experience in Nigeria covers the development of interconnected renewable energy infrastructure, including the Toto Community Mini Grid Project in Nasarawa State, which has become Nigeria’s first interconnected hybrid solar mini-grid.”

“The company’s growing portfolio positions to deploy both stand-alone and grid-connected renewable energy solutions across different customer and market segments, adding that “the investment is expected to support up to 6,000 electricity connections and reach an estimated 41,000 beneficiaries, deploying up to 9 MW of generation capacity and 17 MW + MWh of combined energy impact, contributing to the creation of approximately 470 jobs across the communities and businesses served.

“PowerGen has demonstrated that renewable energy solutions can be efficiently deployed to serve communities and businesses where reliable electricity remains a challenge. This investment reflects our confidence in the company’s ability to build on that experience and take its model further across Nigeria.

“For us, it is about backing a proven platform with the capital it needs to expand access to reliable power, while creating the conditions for more businesses and communities to participate in Nigeria’s economic growth,” she stressed.

Also speaking, the Investment Manager, Oluseye Bassir, noted that, “what stood out for us about PowerGen, is the depth of experience behind the platform and its ability to operate across different renewable energy models.”

“The company has already demonstrated what is possible with interconnected mini-grids, and we see significant potential to replicate and scale that experience in other parts of Nigeria. Our investment alongside the Series C investors gives PowerGen additional capital to move more projects from development into delivery, which of course is where real impact is created,” he added.

The CEO of PowerGen, Aaron Cheng, said the investment reinforces All On’s commitment to supporting Nigerian energy companies with the experience, technical capabilities and scalable business models needed to expand reliable electricity access in underserved and unserved communities, while supporting households and businesses that depend on dependable power to operate and grow.

He said: “All On’s investment is a strong endorsement of PowerGen’s platform and our ability to deliver reliable renewable power at scale. Nigeria remains an important market for PowerGen, and this investment will support our continued growth and our mission to expand access to reliable, affordable and clean energy. We are pleased to welcome All On as a strategic investor and look forward to working together to accelerate the deployment of renewable energy across Nigeria.”