Norfund, the Norwegian investment fund dedicated to developing countries, has announced an additional investment of US$40 million into CrossBoundary Energy (CBE), doubling its total investment in the company to US$80 million. This follow-on investment underscores Norfund’s commitment to scaling up renewable energy solutions for commercial and industrial enterprises across Africa.
The additional funding will support the expansion of CrossBoundary Energy’s portfolio of financed renewable-led power solutions. The company, which provides tailored, fully financed renewable energy solutions, aims to help African enterprises achieve their sustainability goals and reduce electricity costs. With this support, CrossBoundary Energy’s awarded portfolio now stands at $680 million, translating to 500 MW of solar, wind, and thermal assets, and 600 MWh of battery energy storage solutions across the continent.
Norfund has been a steadfast supporter of CrossBoundary Energy and the distributed renewables sector. The continued backing is expected to accelerate the deployment of clean energy across Africa.
In July 2022, CrossBoundary Energy announced the completion of a US$40 million equity investment from Norfund and KLP, Norway’s largest pension company, through their joint venture KLP Norfund Investments AS. This initial investment allowed CrossBoundary Energy to further scale its renewable energy solutions for commercial and industrial businesses in Africa. The latest $40 million investment builds on this foundation, endorsing the maturity and potential of the distributed generation sector in Africa.
This new funding comes in addition to the US$40 million invested in CrossBoundary Energy by ARCH Emerging Markets’ Africa Renewable Power Fund in 2020. The combined investments reflect growing confidence in CrossBoundary Energy’s ability to deliver cheaper, cleaner, and more reliable power to its corporate customers, avoiding upfront capital expenditure and technical risks.
Currently, CrossBoundary Energy is delivering a portfolio of $188 million in projects for 30 corporate customers across 14 African countries. This includes 150 MWp of solar PV assets, 50 MWh of battery energy storage assets, and 12 MW of wind assets. The company’s clients include market-leading firms such as Unilever, Diageo, Rio Tinto, Heineken, and AB InBev.
CrossBoundary Energy is a leading developer, owner, and operator of distributed renewable energy solutions for businesses across Africa, providing cheaper and cleaner energy through power purchase and lease agreements. The company is currently delivering a portfolio of over US$188 million of solar renewable energy assets for clients including Unilever, Diageo, Rio Tinto, Heineken, and AB InBev, and was recently recognized by the Africa Solar Industry Association as “Solar Company of the Year”.