Empower New Energy

Together with Norfund and others, ElectriFI contributed to the first closing of Empower Invest, a facility targeting majority ownership in CPP projects and small scale IPP projects, mainly in Subsaharan Africa. ElectriFI committed to USD 3.2 million. In December 2023 ElectriFI participated with USD 0.4 million in a USD 4 million shareholder loan, alongisde Series B investors.

Project overview

ElectriFI committed USD 3.2 million to finance Empower’s initial pipeline of projects in Kenya, Ghana, and few other countries. Co-investors in the first round are Norfund and a number of Norwegian private investors, while a number of other larger investors is being lined up for a second larger capital raise already.

Since 2019 Empower New Energy, a solar platform investment company raised its first capital of USD 7.9 million in 2019 from ElectriFI – managed by EDFI Management Company, Norfund, and 12 private investors, and a subsequent USD 70 million Series B round end of 2022 frm CFM, Norfund and Janeiro Energy. The company is targeting over 100 MW of renewable energy investments in the next 2 years.

Empower Invest is the first investment platform set up by Empower New Energy, designed to take majority equity stakes in renewable energy-based Commercial & Industrial (C&I) and small Independent Power Producers (IPP) projects. Empower aims to unlock small IPP and mid-size C&I projects by entering into a partnership with local and international developers during late-stage development phase to increase bankability of the projects, and subsequently provide equity to fully cover project-level construction costs. After initial operating period, the projects will be refinanced with debt at portfolio level. Regional focus for the moment is on East- and West-Africa and Empower offers local presence in Nairobi and Accra.

Funding objective

The funding will be used for Empower’s initial pipeline of projects in Kenya, Ghana, and few other countries. Co-investors in the first round are Norfund and a number of Norwegian private investors, while a number of other larger investors is being lined up for a second larger capital raise already.

Investment rationale

ElectriFI is supportive of the business model of Empower for the following reasons:

• Empower’s model will de-risk projects, allowing unrealised projects with high potential impact to be unlocked
• Empower has successfully developed an impressive pipeline of projects that can be executed in the short to medium term;
• support Empower’s further scale up phase, enabling them to implement the project pipeline and demonstrate capabilities on a larger scale.
• the envisaged portfolio of projects will generate 50 GWh of clean energy / year for a total of 45,000 connections, will mitigate ~20,000 tCO2 emissions annually and create 171 direct jobs.
• Support our existing investee and keep interests between shareholders aligned.

Read more:

• Empower New Energy | ElectriFI
• EDFI ElectriFI invests EUR 3m in new impact fund for renewables in Africa | ElectriFI
• Empower New Energy | Clean, reliable low-cost electricity for African businesses