Ignite Power, a leading renewable energy company, has secured $15 million in senior debt financing from the Afrigreen Debt Impact Fund (AFRIGREEN) for its subsidiary, Westa Solar, which specializes in commercial and industrial (C&I) solar energy solutions.
This strategic investment aims to fuel Ignite Power’s ambitious expansion across West Africa, focusing on underserved markets with high energy demand, starting with Nigeria.
The financing agreement will roll out in two phases: an initial tranche of $4 million, followed by an $11 million disbursement contingent on the successful deployment of the first phase and confirmation of mutual intent between the parties. This structured approach ensures alignment of objectives and facilitates efficient project execution.
Ignite Power is set to revolutionize energy access in the region by addressing critical challenges such as unreliable grid power, rising diesel costs, and limited access to affordable financing. With Nigeria, Africa’s largest economy, at the forefront of this transition, the potential for solar energy in the C&I sector is enormous. Frequent power outages and the high operational costs of diesel generators have left many businesses searching for alternative, cost-effective, and reliable energy solutions.
Westa Solar, Ignite’s C&I subsidiary, has already deployed 3 MW of solar energy across West Africa. With the new investment, the company aims to significantly scale up its operations, driving growth in a market projected to exceed 500 MW of installed capacity in the coming years.
Central to Ignite Power’s success is its innovative financing model, which includes Power Purchase Agreements (PPAs) and leasing options. These solutions eliminate the need for significant upfront capital investments, allowing businesses to adopt solar energy with ease.
Moreover, the financing agreement incorporates a pioneering hedging structure developed in collaboration with the International Finance Corporation (IFC).
This mechanism enables Ignite Power to receive funds in USD while repaying in the local Naira-equivalent amount at the time of repayment. By mitigating currency fluctuation risks—a major challenge in Nigeria’s volatile economic environment—this model provides financial stability for project deployment and long-term operations.
Solar energy offers substantial benefits to businesses in West Africa, including:
- Cost Savings: Solar energy provides a cheaper alternative to diesel, with a lower cost per kilowatt-hour.
- Operational Efficiency: Reliable solar systems reduce downtime caused by power outages.
- Environmental Sustainability: Transitioning from diesel generators to solar energy reduces carbon emissions and aligns with global climate goals.
Yariv Cohen, CEO of Ignite Power, highlighted the transformative potential of the investment:
“This partnership with Afrigreen represents a landmark opportunity not only for our company but also for the entire solar sector across West Africa. The demand for clean, reliable, and affordable energy solutions has never been greater, particularly in Nigeria. With this financing, we can offer businesses innovative solutions, making solar energy accessible to a wider market. This is an unprecedented opportunity to establish the next generation of the energy sector—distributed, 100% sustainable, and clean.”
Vincenzo Capogna, Managing Director of Westa Solar, emphasized the pressing need for solar solutions in the C&I sector:
“Businesses in Nigeria are grappling with unreliable grid power and rising fuel costs. Our solar solutions offer a reliable, cost-effective, and environmentally friendly alternative. This investment enables us to accelerate project deployment and reshape the energy landscape in the region.”
Alexandre Gilles, Managing Director of Afrigreen Fund Advisor, praised Ignite Power’s vision and the innovative financial structuring of the deal:
“We are proud to support Ignite Power, a visionary player in the C&I solar market. By mitigating currency risks, this financial structure ensures sustainable growth for renewable energy projects in emerging markets. Our investment aligns with Afrigreen’s mission to foster impactful renewable energy initiatives, and we are excited about the positive changes this will bring to the region.”
With this financing, Ignite Power is poised to lead West Africa’s renewable energy revolution. By combining innovative financing mechanisms with cutting-edge solar technology, the company is unlocking significant growth opportunities in a region with profound energy challenges.
As the industrial and commercial sectors in West Africa increasingly turn to solar energy, Ignite Power’s efforts are expected to drive economic development, enhance operational reliability, and contribute to environmental sustainability. This $15 million investment marks a critical milestone in the region’s energy transition, positioning Westa Solar as a key player in shaping a cleaner, more sustainable future for businesses of all sizes.