Powell has moved to Colchester on a season-long loan.
Powell told Colchester's club website, "I’m really excited. When I first heard about the opportunity to come here, it was something I was definitely interested in.
"A few Forest boys have been here before, Aaron Donnelly, Jamie Mac, Pez is here now. I know the club have got a project in moving young players forward, and that definitely excited me. I’m high energy. I like to join in the attack, but I also think I’m quite good defensively.
"You can expect to see me being solid 1v1 defensively and defending the back post, but I can also get forward, deliver a few balls into the box, and hopefully contribute at set pieces as well."
