Dealflow | July 26, 2021

CrossBoundary backs PowerGen to develop mini-grids in Nigeria

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, July 26 – Nairobi-based PowerGen has developed three megawatts of small-scale distributed energy projects serving 20,000 people in Africa. The investment from CrossBoundary Energy Access will add nearly triple that number of customers to PowerGen’s network through the development of 28 solar mini-grids in Nigeria.

Blended finance

CrossBoundary is providing an undisclosed amount of long-term project financing for the initiative and will acquire and manage the portfolio of mini-grids once developed. Oikocredit, Triodos and E.U.-backed ElectriFi are providing $9 million in construction financing. The World Bank and the Nigeria Rural Electrification Agency are contributing grant funding based on the number of new customers connected to the mini-grids.

The 28 grids are aiming to reach 55,000 people.

CrossBoundary Energy Access is a sister company to CrossBoundary Energy, which sold its 40-megawatt off-grid solar portfolio to ARCH Emerging Markets Partners last year.