CrossBoundary Gets $25 Million For Solar Power Mini-Grids Expansion In Africa

Kenya based CrossBoundary Energy Access (CBEA) has announced that it has raised $25 million funding from different investors – ARCH Emerging Markets Partners Limited, Bank of America, and Microsoft Climate Innovation Fund. The new investment will also garner an additional $25 million in senior debt for the deployment of $50 million of capital that will add to the near-term pipeline of solar powered mini-grids of CrossBoundary. For large parts of Africa, with national grids being virtually absent or minimal, mini-grids offer the most practical option to make the shift to renewable energy, especially solar. According to CrossBoundary mini grid development requires long term capital, and hence the funds infusion will be a great help in that move for them.

The firm claims that the investment will lead to availability of clean energy to one million people in Africa in the next two years. Solar power and batteries that will make the mini grids will help in providing 24X7 electricity to households and small businesses for the first time in  besides making electricity available to the rural areas that never had power connections earlier.

Gabriel Davies, MD and Head of Energy Access, CrossBoundary, said, “CrossBoundary Energy Access has grown up with the sector and this fundraise is a testament to the work of the developers, governments, and donors over the last few years. Confidence from ARCH, Bank of America, and Microsoft, reflects the growing maturity of both the mini-grid sector, and its ability to attract institutional capital.”

Humphrey Wireko, MD, CrossBoundary, added that the project financing will lead to unlocking both public and private capital that is needed in furthering the mini-grid sector. He said, “We look forward to mobilizing this investment to bring the projects in our pipeline to life and providing power to African homes and businesses through these distributed renewable assets.”

Amy Brusiloff, Community Development Executive, Bank of America, mentioned that Bank of America supports renewable and clean energy solutions in the interiors of Africa meant to heighten the transition to clean energy.

Brusiloff added, “This innovative blended finance structure by CrossBoundary Energy Access aggregates renewable energy mini-grid projects to achieve scale and reduce risk, which more readily enables large institutions to invest.” The International Energy Agency (IEA) says that this kind of solar mini-grid sector requires about $187 billion to realize the goal of universal energy access by the end of this decade.