• Electrify.solar, PowerGen partner to test blockchain energy financing

• Model aims to attract private capital, boost transparency

• Targets distributed renewables expansion across multiple African countries

Electrify.solar said on Monday it had signed a partnership with PowerGen Renewable Energy to explore using blockchain to finance distributed energy projects across Africa.

"This partnership brings together PowerGen’s deep execution capabilities across Africa with Electrify.solar’s digital infrastructure for capital formation," the company said in a statement on LinkedIn.

The collaboration aims to test a new way to attract third-party capital, increase transparency in how funds are used and develop a replicable model for financing decentralized energy infrastructure. Electrify.solar is developing a financing platform based on the sale of "utility tokens" representing rights to future electricity production, according to its website.

The initiative aligns with PowerGen's strategy to develop a distributed renewable energy platform targeting 120 MW of capacity, with battery storage. Its project portfolio spans the Democratic Republic of Congo, Nigeria and Sierra Leone.

The company is backed by several international partners, including the Private Infrastructure Development Group (PIDG), the Danish Investment Fund for Developing Countries (IFU), EDFI Management Company through ElectriFI, and the Sustainable Energy Fund for Africa (SEFA) of the African Development Bank.

Decentralized solutions are a key way to expand electricity access in Africa, particularly in rural areas, according to the International Energy Agency (IEA). Systems such as mini-grids and standalone solar systems are drawing growing investor interest, with financing up 20% between 2019 and 2023. However, the sector remains heavily dependent on public funding, which accounts for more than 70% of funding, while private capital has yet to scale up.

Against that backdrop, several players are testing new financial models to attract the investment needed to support expansion.

Abdoullah Diop