The Norwegian Investment Fund for Developing Countries (Norfund) and KLP, Norway’s largest pension company, have completed a US$40 million equity investment in CrossBoundary Energy (CBE), a developer, owner, and operator of commercial and industrial renewable energy systems in Africa.
This was done through their joint company KLP Norfund Investments AS.
CrossBoundary Energy will be able to ramp up its investments in renewable energy solutions for commercial and industrial organizations across Africa thanks to this pledge.
The $40M commitment supports the size and maturity of the distributed generation industry in Africa and is a continuation of Norfund and KLP’s past investments in the C&I sector. The secured funding is in addition to the $40 million in equity that the Africa Renewable Power Fund of ARCH Emerging Markets will invest in CrossBoundary Energy in 2020.
For its business clients, CrossBoundary Energy offers customized, fully financed renewable energy solutions that let them avoid up-front capital expenses and technical concerns while yet enjoying the advantages of less expensive, cleaner, and more dependable power.
For 30 corporate clients spread across 14 countries in Africa, CrossBoundary Energy is now producing a portfolio of $188 million worth of projects. These projects include 150 MWp of solar PV assets, 50 MWh of battery energy storage assets, and 12 MW of wind assets. Unilever, Diageo, Rio Tinto, Heineken, and AB InBev are just a few of the market-dominating businesses present in Africa that choose CrossBoundary Energy as their renewable energy supplier.
Pieter Joubert, President and Chief Investment Officer, CrossBoundary Energy says, “We are very excited to welcome Norfund and KLP as investors. Their commitment is aligned with our belief that the business sector across Africa should be able to benefit from cheaper, cleaner and more reliable power. This investment validates CrossBoundary Energy’s position as a trusted provider of customer-centric renewable energy solutions to the African business community. We look forward to drawing on Norfund’s significant experience as seek to deliver an operational portfolio of over $300M in assets within the next 5 years.”
Kristoffer Valvik, Investment Manager, Norfund, says, “We believe that distributed renewables are playing a critical role in driving towards the clean and sustainable growth of the commercial and industrial sector across Africa. The cost savings offered by renewable energy, coupled with the reliability of battery energy storage systems, allows companies like CrossBoundary Energy to provide the business sector with immediate cost savings whilst significantly reducing their emissions, and creating employment in the renewable energy sector. CrossBoundary Energy has secured a leading portfolio of high-quality assets and we are excited to support them as they continue to scale.”