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Ignite Power Secures US$15 Million Financing to Expand Solar Energy Solutions Across West Africa

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Ignite Power, a prominent player in renewable energy, has secured a $15 million senior debt financing from the Afrigreen Debt Impact Fund (AFRIGREEN) to support its subsidiary, Westa Solar, in delivering commercial and industrial (C&I) solar solutions.

The funds will enable Ignite Power to expand its operations across West Africa, with a primary focus on Nigeria, a key market with high energy demand.

The financing will be rolled out in two phases: an initial $4 million tranche, followed by an $11 million disbursement contingent on the successful deployment of the first phase. This phased approach ensures alignment between both parties and promotes the efficient execution of the solar projects.

The investment aims to address the critical energy challenges in West Africa, including unreliable grid power, rising diesel costs, and limited access to affordable financing. Nigeria, Africa’s largest economy, is at the forefront of this transition, where businesses, plagued by power outages and expensive diesel generators, are increasingly seeking alternative energy solutions.

Westa Solar, which has already deployed 3 MW of solar energy in the region, is poised for significant expansion. The company plans to scale up its operations, contributing to a market projected to exceed 500 MW of installed capacity in the coming years.

A key element of Ignite Power’s success is its innovative financing model, which includes Power Purchase Agreements (PPAs) and leasing options. These solutions eliminate the need for large upfront investments, making it easier for businesses to adopt solar energy.

Additionally, the financing agreement incorporates a hedging structure developed in partnership with the International Finance Corporation (IFC), which helps mitigate currency risks—particularly the fluctuations of the Nigerian Naira—by allowing payments to be made in local currency equivalents while receiving funds in USD.

Yariv Cohen, CEO of Ignite Power, emphasized the significance of the partnership with AFRIGREEN, calling it a transformative opportunity not only for the company but for the broader solar energy sector across West Africa. “This financing allows us to offer innovative, accessible solar energy solutions to businesses, contributing to the next generation of a distributed, sustainable, and clean energy sector,” he said.

Vincenzo Capogna, Managing Director of Westa Solar, underscored the pressing need for reliable solar solutions, particularly in Nigeria’s commercial and industrial sectors. “Our solutions offer a cost-effective, environmentally friendly alternative to the unreliable grid power and rising fuel costs faced by businesses,” he said.

Alexandre Gilles, Managing Director of Afrigreen Fund Advisor, expressed confidence in Ignite Power’s ability to drive sustainable growth in renewable energy. “We are proud to support Ignite Power in its mission to reshape the energy landscape in West Africa. This innovative financial structure ensures long-term stability and sustainable growth for renewable energy projects in emerging markets,” he stated.

This $15 million investment positions Ignite Power as a key player in the energy transition in West Africa, driving economic growth, operational reliability, and environmental sustainability. As the region’s C&I sector increasingly turns to solar energy, Ignite Power is poised to make a lasting impact, advancing West Africa’s journey toward a cleaner and more sustainable energy future.

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