All On, PowerGen Partner to Expand Mini-Grids, Target 41,000 Nigerians

All On has announced a partnership with PowerGen Renewable Energy Nigeria Limited to develop more mini-grid projects across Nigeria. The deal is structured as a mezzanine investment. It is expected to support up to 6,000 electricity connections, reach about 41,000 beneficiaries and create approximately 470 jobs.

The projects could deliver up to 9MW of generation capacity and 17 MW + MWh of combined energy impact. They will include isolated and interconnected renewable energy mini-grids for households, businesses and industrial customers.

What the investment covers

All On said the investment will enable PowerGen to deepen its presence in Nigeria and accelerate renewable energy infrastructure deployment in areas where electricity supply is limited or unreliable.

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

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 said PowerGen had demonstrated its 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 Nigerian footprint

PowerGen’s existing Nigerian projects include the Toto Community Mini Grid Project in Nasarawa State. It is 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.

Why mini-grids matter

The partnership comes as millions of Nigerian households and businesses depend on alternative power sources because of inadequate or unreliable grid electricity. Mini-grids have become an option for underserved and unserved communities, especially 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. Its investments focus on expanding affordable, reliable and sustainable electricity access, particularly for low-income households and small businesses.

The Rural Electrification Agency is constructing 48 interconnected mini-grid projects across 19 states. The 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.

For Nigerian businesses and households in poorly served areas, more mini-grid capacity could mean more reliable power and less dependence on alternative sources. The impact will depend on how quickly the projects move from development to delivery.