Crossboundary Energy Access (CBEA) and ENGIE Energy Access have signed a $60 million agreement to finance the construction of a portfolio of mini-grids connecting 150,000 people to power in Nigeria.
While ENGIE has developed a pipeline of mini-grids to build for the next four years, CBEA will finance all the development and construction activities and will own the project.
ENGIE will provide long term operations and maintain services for the project and CBEA will provide the private transactions and invest it alongside the Performance Based Grant (PBG) funded by the World Bank and administered by Rural Electrification Area (REA) and the Nigeria Electrification Project(NEP).
Associate Director, CBEA, Annette Mumbai, said CBEA has improved the project financing approach for mini-grids to deploy capital faster and more efficiently by investing from procurement.
She further noted that the improvements enable developers to build mini-grids and deliver electricity to more people at a faster pace.
Chief Executive Officer (CEO), ENGIE Energy Access, Gillian-Alexandre Hyatt noted that the deal reflects their long-term commitment as a leading provider of energy access solutions in Africa.
He emphasised that the agreement will connect marginalised rural populations in Nigeria with clean and affordable technologies and facilitate more economic opportunities in these hard-to-serve areas.
Country Director, ENGIE Energy Access, Bankole Cardozo, Nigeria said the partnership is a huge step forward to not only impact lives through affordable, reliable and sustainable energy solutions, but to also improve economic productivity in communities across Nigeria.
Also, Managing Director at CrossBoundary Energy Access, Humphrey Wireko said the investment would not be possible without the enabling environment created by Nigeria’s mini-grid regulations, World Bank, REA and the NEP program looking forward to expand the project financing approach to other markets with similar enabling environment
Head, Mini-Grids, ENGIE Energy Access Nigeria, Onyinye Anene-Nzelu, said the partnership shows the possibility within the off-grid decentralized renewable energy industry in Nigeria and across Africa, signaling to other investors becoming partners in progress to bridge Africa’s huge energy gap.