All On, an impact investment firm, has announced a partnership with PowerGen Renewable Energy Nigeria Limited to develop additional mini-grid projects across Nigeria. The collaboration, structured through a mezzanine investment, aims to deliver cleaner and more reliable electricity to households, businesses, and industrial customers.
Investment to Support 6,000 Connections and 41,000 Beneficiaries
The investment is expected to support up to 6,000 electricity connections, reaching an estimated 41,000 beneficiaries. It is also projected to help create approximately 470 jobs in communities and businesses served by the projects. The planned projects are expected to deliver up to 9MW of generation capacity, alongside 17 MW + MWh of combined energy impact.
According to All On, the investment will enable PowerGen to deepen its presence in Nigeria and accelerate renewable energy infrastructure deployment in areas where electricity supply remains limited or unreliable. PowerGen operates renewable energy and distribution utility projects across several African markets, including Nigeria, Kenya, Sierra Leone, and the Democratic Republic of Congo.
All On CEO Comments on Partnership
All On CEO Caroline Eboumbou said the investment effectively closes the Series C capital raise by PowerGen's parent company, WindGen Power USA Inc. Other investors include ElectriFI, Impact Fund Denmark, the Sustainable Energy Fund for Africa, and InfraCo.
Eboumbou highlighted PowerGen's demonstrated ability to deploy renewable energy solutions for communities and businesses struggling with unreliable electricity. "This investment reflects our confidence in the company's ability to build on that experience and take its model further across Nigeria," she said.
PowerGen's Existing Projects and Expansion Plans
PowerGen's existing Nigerian projects include the Toto Community Mini Grid Project in Nasarawa State, described as Nigeria's first interconnected hybrid solar mini-grid. All On Investment Manager Oluseye Bassir said PowerGen's experience across different renewable energy models was a major attraction. According to him, the additional funding will help move more projects from the development stage into actual delivery.
PowerGen CEO Aaron Cheng described All On's investment as an endorsement of the company's renewable energy platform and its ability to deliver reliable 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," Cheng said.
Mini-Grids as Alternative for Underserved Communities
The partnership comes as millions of Nigerian households and businesses continue to depend on alternative power sources because of inadequate or unreliable grid electricity. Mini-grids have increasingly emerged as an alternative for underserved and unserved communities, particularly where extending conventional grid infrastructure is difficult or commercially challenging.
All On Partnerships for Energy Access is an independent impact investment company seeded by Shell to support the growth of Nigeria's off-grid energy market. Its investments are focused on expanding affordable, reliable, and sustainable electricity access, particularly for low-income households and small businesses.
In a related development, the Rural Electrification Agency is constructing 48 interconnected mini-grid projects across 19 states in Nigeria. These projects are expected to provide 252,505 electricity connections and add 213.3MWp of solar capacity with battery storage. The initiative follows new regulations allowing interconnected mini-grids of up to 10 megawatts, opening the way for larger and more commercially viable renewable energy projects.
