Denmark’s official Investment Fund for developing countries, Impact Fund Denmark, has invested $40M into CrossBoundary Energy (CBE), a company providing distributed solar power to businesses across Africa.
The funding is earmarked to scale CBE’s portfolio of solar and battery energy storage projects, directly tackling one of the biggest operational hurdles for African companies: access to reliable and affordable electricity.
The Problem: Diesel Dependency
For many businesses operating on the continent, the national grid is often unreliable, leading to frequent and costly power outages. The default backup solution is the diesel generator — a source of power that is expensive to run, subject to volatile fuel prices, and a significant producer of carbon emissions.
CrossBoundary Energy’s model bypasses this problem by developing, financing, and operating on-site renewable energy systems for commercial and industrial (C&I) clients. It sells the power through long-term Power Purchase Agreements (PPAs) or lease agreements, often at a rate cheaper than both the grid tariff and the cost of running a generator.
“This investment aligns with our objectives to tackle climate change, support fragile regions, and promote growth in Africa,” said Thomas Hougaard, Managing Director at Impact Fund Denmark. “By supporting CrossBoundary Energy, we are contributing to sustainable development [and] reducing carbon emissions.”
A Zero-Capex Model
A key element of CBE’s strategy is its “zero-CapEx” offering. Clients are not required to make an upfront investment in the solar infrastructure, removing a significant barrier to adoption.
“Our zero-CapEx model lowers the barrier for African companies seeking stable, clean, and cost-effective power,” said Pieter Joubert, President and Chief Investment Officer at CrossBoundary Energy. “This allows businesses to focus on their core operations while accessing reliable renewable energy.”
This energy-as-a-service approach has gained traction with major corporations. CBE’s client list includes multinational firms like Unilever and Guinness, as well as heavy industry players such as mining giant Rio Tinto.
The company currently has an operational portfolio of 30 projects across eight African countries. Recent projects highlight its scope, from powering telecom towers in Sierra Leone for the country’s first 5G network to co-developing Madagascar’s first utility-scale wind farm alongside a 14 MWp solar project for Rio Tinto’s ilmenite mine.
A Growing Market
The investment from Impact Fund Denmark signals a wider trend of investor interest in Africa’s C&I solar sector. As the technology costs for solar panels and battery storage have fallen, the economic case for distributed renewables has become increasingly compelling for businesses seeking to reduce operational costs and improve their carbon footprint.
While CBE is a prominent player, the space is becoming more competitive with a growing number of local and international developers vying for a share of the market. However, with a proven track record and $40M in fresh capital, CrossBoundary Energy is positioned to accelerate its expansion in a sector critical to the continent’s economic development.