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CrossBoundary Energy Access Finances Engie’s Solar Mini-Grid Projects in Nigeria

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REA and CarbonAi Sign MoU to Develop Solar Mini-Grid Projects in Rural Nigeria

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CrossBoundary Energy Access (CBEA), Africa’s first project finance platform for mini-grids, has joined hands with Engie Energy Access for electrification in Nigeria. CBEA has committed to invest $60 million in green mini-grid projects developed by the subsidiary of French group Engie.

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Engie Energy Access has signed a financing agreement with CBEA which concerns the development of solar mini-power plants in rural communities in Nigeria. The two companies are committed to deploying these grid-equipped plants within the next four years and providing electrification for at least 150,000 people.

Under the recently announced agreement, Engie Energy Access will operate and maintain the solar mini-grids after their construction and commissioning. The renewable energy company will ensure clean, reliable electricity for residential, commercial, and generation customers, while providing high-quality, customer-centric services.

Engie and CBEA are executing this deal under the Nigeria Electrification Project (NEP), implemented by the Rural Electrification Agency (REA), with funding from the World Bank. This portfolio of solar mini-grids will benefit from the Performance Based Grant (PBG) in Nigeria, a mechanism that supports the projects of several electricity providers in the country.

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Annette Mumbi, Associate Director at CBEA, mentioned their improved project financing approach for green mini-grids to deploy capital faster and more efficiently by investing in procurement. This has enabled the developers to build and commission mini-grids at a faster pace. The recent agreement with Engie is one of the many steps towards closing the energy gap in Africa.

Gillian-Alexandre Huart, CEO of Engie Energy Access, said, their partnership with CrossBoundary Energy Access reflects the company’s long-term commitment as a leading clean energy solutions provider in Africa. This agreement will connect marginalized rural communities in Nigeria with clean and affordable technologies as well as promote productive usage of energy which is a key to growing resilient economic networks in these regions.

The pipeline of solar mini-grid projects will strengthen Engie’s presence in Nigeria and expand its energy access track record across Africa. With this partnership, Engie will have a direct impact on the agricultural productivity, construction, and industrial activity in the rural communities thereby increasing the earning potential of the people across Nigeria.

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The financing structure between CBEA and Engie in Nigeria provides a framework for bringing more private capital into the clean energy sector. The agreement represents further progress in Africa’s mini-grid sector as it will expand access to electricity to grid-unserved communities, creating economic growth and increasing socio-economic welfare in the region.

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