Kenya-based Transboundary Energy Access Fund (CBEA), has raised $25 million from ARCH Emerging Markets Partners Limited, Bank of America, and Microsoft’s Climate Innovation Fund to support projects renewable energy across the continent.
CBEA, a subsidiary of investment group Crossboundary, said in a statement that the new funding will settle an additional $25 million in senior debt, helping it secure capital at $50 million, as well will be used for short-term financing. mini grid provides solar energy.
The fund, set up in 2019 with initial support from the Rockefeller Foundation, Ceniarth, DOEN Foundation, Shell Foundation and UK Aid, plans to pour $150 million into solar projects over the next two years.
As a financier, commercial owner and operator of small grids, CBEA has helped households and businesses access clean energy in many countries across Africa.
“This is an important step for CrossBoundary Energy Access towards unlocking the private and public capital needed to scale the small grid sector,” said CrossBoundary Energy Access CEO Humphrey Wireko. We look forward to raising this investment to bring the projects in our network to life and power African households and businesses through renewable assets. this distribution. ”
CBEA has worked with a number of solar companies in Nigeria, Kenya, Ghana and Rwanda, including Topec, SolarAfrica, PowerGen, Centennial, solarcentury and soventix to deploy multiple small solar grids.
Sub-Saharan Africa accounts for 75% of the world’s population without access to electricity. Countries like South Sudan, Burundi, Chad, Malawi, Burkina Faso, Madagascar and Tanzania are among the least electrified in the world and can benefit from clean energy from solar or wind power.
According to the World Bank, microgrids have the potential to provide clean energy for half a billion people by the end of this decade (including those using overloaded grids) with the right policies. The microgrid also offers cleaner and cheaper energy alternatives.
Commenting on the deal, William Barry, chief executive officer of ARCH Emerging Markets Partners Limited’s Africa Renewable Power Fund (ARCH ARRF), said: “We believe renewables are distributed, including microgrids, are a key component of Africa’s energy future, and Transboundary Energy Access has developed a thoughtful, integrated approach to addressing the challenge of unlocking capital for the sector. this. At ARCH ARPF, we look forward to partnering with strong management teams and investing in scalable business models that provide compelling alternatives for their clients. We’re excited to help them scale. ”
