Page 11 - AfrElec Week 24 2022

AfrElec RENEWABLES AfrElec

CrossBoundary Energy Access

announces $25mn funding

commitments for solar mini-grids

AFRICA AFRICA’S first project financing facility for $187bn to achieve universal energy access by
mini-grids, CrossBoundary Energy Access 2030.
(CBEA), has announced $25mn in new fund- CBEA believes that project finance is key to
ing commitments for its near-term pipeline of unlocking the long-term, infrastructure-type
solar-powered mini-grids. capital that the mini-grid sector needs. Its
CBEA announced its launch in January 2019, blended finance approach creates a new model
with funding from The Rockefeller Foundation for funding rural electrification in Africa, bring-
and Ceniarth, targetting an initial $16mn into ing renewable electricity to one million people
mini-grids serving 170,000 people, providing once the target $150mn is fully deployed, CBEA
first-time power to homes and businesses in said in the statement.
markets with supportive mini-grid regulatory “We believe that distributed renewables,
frameworks, such as Tanzania, Nigeria, and including mini-grids, are a critical component
Zambia. of Africa’s energy future, and CrossBoundary
The newly announced funding from ARCH Energy Access has developed a thoughtful,
Emerging Markets Partners Limited, Bank of blended approach to the challenge of unlocking
America, and Microsoft Climate Innovation capital for the sector,” said William Barry, Man-
Fund will leverage an additional $25mn in sen- aging Director, ARCH Emerging Markets Part-
ior debt to deploy $50mn into the project, CBEA ners Limited’s Africa Renewable Power Fund
said in a press release on June 16. (ARCH ARPF).
CBEA plans to deploy a total of $150mn over CBEA’s managing director Humphrey
the next two years to bring clean energy to 1mn Wireko, called it a crucial step for CrossBound-
people in Africa. The mini-grids combine solar ary Energy Access towards unlocking the private
panels and batteries to provide 24/7 access to and public capital needed to scale the mini-grid
renewable power to households and businesses, sector. “We look forward to mobilising this
many of them in rural areas of Africa. investment to bring the projects in our pipeline
According to the International Energy to life, and providing power to African homes
Agency (IEA), more than 600mn people in and businesses through these distributed renew-
Africa do not have access to electricity. The IEA able assets,” he said.™
estimates, that the solar mini-grid sector needs

Week 24 16•June•2022 www. NEWSBASE .com P11