All On Invests $5m to Expand Nigeria’s Mini-Grid Network

All On, a renewable energy company, has invested $5m in PowerGen Renewable Energy Nigeria Limited to support the development of mini-grids for Nigerian homes and businesses.

The funding is expected to provide up to 6,000 electricity connections, reach an estimated 41,000 beneficiaries and create approximately 470 jobs.

The investment will support isolated and interconnected mini-grid projects serving households, commercial establishments and industrial customers with limited or unreliable electricity supply.

All On's Chief Executive Officer, Caroline Eboumbou, said the funding would help PowerGen expand its renewable energy infrastructure in Nigeria.

The investment was made through a mezzanine facility, a form of financing that sits between ordinary loans and equity investment.

Funding to support new power projects

PowerGen operates renewable energy and electricity distribution projects in Kenya, Nigeria, Sierra Leone and the Democratic Republic of Congo.

Its Nigerian operations include standalone mini-grids and systems connected to existing electricity networks.

All On said its investment would enable PowerGen to expand its presence in Nigeria and provide renewable energy services to more customers.

The projects are expected to deliver up to nine megawatts of generation capacity and an energy impact of 17 MW + MWh.

Eboumbou said PowerGen had shown that renewable energy could serve homes and businesses in places where dependable electricity supply was difficult to obtain.

“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,” she said.

The funding also completes the Series C capital raise by PowerGen's parent company, WindGen Power USA Inc.

Other investors in the funding round include ElectriFI, Impact Fund Denmark, the Sustainable Energy Fund for Africa and InfraCo.

All On said the funding would support PowerGen's project development and delivery across Nigeria.

Oluseye Bassir, Investment Manager at All On, said PowerGen had already shown the potential of interconnected mini-grids.

“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,” Bassir said.

PowerGen's portfolio includes renewable energy systems designed for different customer groups and markets.

The planned projects will serve households, businesses and industrial users through standalone and grid-connected systems.

The investment provides additional financing for PowerGen's work on mini-grid projects in Nigeria, with the projected connections, electricity capacity and job opportunities forming the main outcomes of the funding.