All On Invests $5 Million in PowerGen to Expand Renewable Mini-Grids in Nigeria

All On Partnerships for Energy Access has invested $5 million in PowerGen Renewable Energy Nigeria Limited to accelerate deployment of renewable mini-grids and grid-interconnected systems across Nigeria. The mezzanine financing is intended to move projects from development into operation, and All On expects the financed projects to deliver up to 6,000 electricity connections, reach roughly 41,000 people, add as much as 9 megawatts of generation capacity and support about 470 jobs in the communities served.

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

The $5 million from All On effectively completes a Series C capital raise by PowerGen’s parent company, WindGen Power USA Inc. The round includes a blend of development finance and impact investors: ElectriFI, Impact Fund Denmark, the Sustainable Energy Fund for Africa, and InfraCo. That investor mix is designed to give PowerGen the capital flexibility to expand both isolated mini-grids and systems that interconnect with existing distribution networks.

PowerGen owns and operates renewable power and electricity distribution assets with offices in Kenya, Nigeria, Sierra Leone and the Democratic Republic of Congo. In Nigeria its portfolio includes the Toto Community Mini Grid Project in Nasarawa State, noted as the country’s first interconnected hybrid solar mini-grid. Interconnected mini-grids differ from fully isolated systems by working alongside the national distribution network, supplementing unreliable grid supply with locally generated electricity.

Aaron Cheng, CEO of PowerGen, said the investment underlines the company’s growth ambitions in Nigeria. “All On’s investment is a strong endorsement of PowerGen’s platform and our ability to deliver reliable renewable power at scale,” Cheng said. “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.”

Context for the deal is shaped by Nigeria’s persistent electricity access and reliability challenges. World Bank data cited by the company show that 62.5% of Nigeria’s population had access to electricity in 2024, leaving a substantial share of households and businesses either unconnected or dependent on intermittent supply. That gap has driven commercial demand for decentralized solutions capable of serving areas beyond the effective reach of conventional power infrastructure and reducing dependence on costly private generators.

The planned developments aim not only to increase household and business connections but to bolster local economic activity. Reliable electricity can enable businesses to run equipment for longer periods, cut spending on backup generation, and redirect capital into expansion rather than fuel and maintenance. The projects financed through this transaction are also expected to create roughly 470 local jobs tied to operations, maintenance and customer services.

Outlook

• All On’s capital injection should enable PowerGen to transition additional projects from pipeline to operational status across Nigeria, increasing both distributed generation capacity and customer reach.
• The involvement of ElectriFI, Impact Fund Denmark, the Sustainable Energy Fund for Africa and InfraCo brings a mix of development finance, impact investment and infrastructure expertise to support varied distributed energy projects.
• Success will be measured by delivery of the targeted 6,000 connections, the addition of up to 9 MW of renewable capacity, and the sustained operation of interconnected mini-grids that can reduce reliance on backup generators and improve commercial productivity.