Page 12 - AfrElec Week 50 2020

AfrElec NEWS IN BRIEF AfrElec

through its solar-as-a-service business model,
which enables corporate customers to avoid
technical risk and upfront capital expenditure.
The approach is based on long-term
agreements which see Crossboundary and
solar contractors and local developers finance,
install, and operate solar assets.
The first distributed solar power purchase
agreements (PPAs) signed by Crossboundary
Energy benefited corporate customers in
Kenya, Uganda, Ghana, Rwanda, Madagascar,
Zambia, Sierra Leone, and Nigeria. Those
deals built an extensive client base with
leading African companies including brewer
Kasapreko and flower exporter Xflora Group,
and with multinationals such as brewers
Diageo, Heineken, and AB Inbev; Unilever;
Coca-Cola distributors; miner Rio Tinto, and
emerging markets investor Actis.
CROSSBOUNDARY

HYDRO
Nigeria connects 60MW

Dadin Kowa hydropower

severely constrained.” Crossboundary in 2015 was announced at a plant to national grid
15%, net, internal rate of return. The fund had
been established with the help of a $1.3mn The number of hydropower plants producing
repayable grant from U.S. federal government electricity in Nigeria has increased to four as a
MINI- GRIDS development agency USAID‘s Power Africa new plant has been connected to the nation’s
initiative, which attracted more than $7.5mn power grid, Nigeria’s Punch reported.
Crossboundary develops of private investment. After the sale of its located in Gombe State, has an installed
The Dadin Kowa Hydropower Plant,
investments to the ARPF, the fund repaid
mini grids in Kenya the USAID grant at a 5% return and the generation capacity of 60 megawatts, data
vehicle attracted further grant support from
obtained from the Nigerian Electricity System
Nairobi-based financial services business the U.S. International Development Finance Operator on Sunday showed.
Crossboundary Group has announced the Corporation and the Shell Foundation, The NESO data showed that the new
successful exit of the CBE I fund it raised five in partnership with the U.K. Foreign, plant made its debut on the national grid on
years ago to drive commercial and industrial Commonwealth and Development Office. Friday with a generation of 30MW as of 6am
(C&I) solar projects in Africa. Pieter Joubert, chief investment officer that day. It generated 30.65MW as of 6am on
The landmark was achieved in September, at Crossboundary Energy, said: “In terms Sunday.
with a sale of the investments to recently of what comes next, partnering with an The country generates most of its
established, London-based emerging markets industry-leading investor like Arch ARPF electricity from gas-fired power plants, while
energy fund, Africa Renewable Power Fund [African Renewable Power Fund] highlights output from hydropower plants account for
(ARPF) as part of a $40mn commitment by the proven viability of captive commercial and about 30 per cent of total generation. The
the ARPF to commercial solar projects. The industrial solar projects in Africa. We’re very other hydropower plants are Kainji, Jebba and
ARPF is managed by London-based specialist excited to work with Arch ARPF to continue Shiroro.
investment advisor Arch Emerging Markets providing Africa’s leading businesses with Total power generation in the country
Partners. cheaper, cleaner, more reliable power at no stood at 4,482.55MW as of 6am on Sunday,
With Arch – which was set up by upfront cost. This commitment by Arch ARPF down from 4,658.90MW on Saturday.
London-based JCH & Partners LLP – having represents the next phase of a larger, $100mn Gas constraints and low demand by
commissioned Crossboundary Energy transaction which will allow us to take the electricity distribution companies left a total
Management to find and develop more C&I C&I sector to scale across Africa and, in generation capacity of 1,915.8MW unused as
solar projects for the new fund, the Kenyan doing so, further reduce energy costs for our of 6am on Sunday, up from 1,716.6MW on
group has also announced plans by its mini customers, create additional jobs within the Saturday, according to the system operator.
grids unit to open up its approach to investing solar sector, and significantly reduce carbon Egbin, the nation’s biggest power plant,
in local off-grid networks on an open-source emissions.” located in Lagos, saw its output surge to
basis. Crossboundary’s C&I operation has spent 773MW on Sunday from 692MW on
he exit of the CBE I fund set up by five years developing the African solar market Thursday.

P12 www. NEWSBASE .com Week 50 17•December•2020