Nigeria: CrossBoundary in rural electrification deal
PowerGen, a developer in Africa of on-grid and off-grid distributed energy, has secured long term project financing to connect 55,000 people to electricity in rural Nigeria from CrossBoundary Energy Access with construction financing provided by Oikocredit, Triodos Investment Management and EDFI ElectriFI (the EU-funded Electrification Financing Initiative).
The electricity will be provided by 28 distributed renewable energy systems, designed as solar PV and battery-powered mini-grids.
Oikocredit, Triodos, and EDFI ElectriFI are acting as the construction financiers for the transaction, providing $9 million of financing for the construction phase of the project. Once operational, CrossBoundary will purchase the portfolio, becoming the long-term owner of the systems and providing the construction financiers with an exit.
PowerGen will build the systems and continue to act as the long-term operator of the project after the transfer to CrossBoundary.
Humphrey Wireko, associate principal at CrossBoundary Energy Access said: “We’re excited to work with such strong partners to reach an agreement to finance and own this portfolio of mini-grids in Nigeria. We continue to believe that mini-grids are a key tool for bringing power to over 200 million people in Africa, and this project finance structure is the best way to attract the $187 billion of investment that these assets need. This transaction is a testament to the fantastic work being done by many stakeholders to help facilitate off-grid investment in Nigeria. We see this as the first of many such financings that CBEA plans to do in Nigeria.”
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