Norfund, the Norwegian Investment Fund for developing countries, and KLP, Norway’s largest pension company, through their joint company KLP Norfund Investments AS, have completed an equity investment of US$40 million into CrossBoundary Energy (CBE)’s commercial and industrial (C&I) solar projects portfolio in Africa.
The parties said the $40M commitment is a continuation of Norfund and KLP’s earlier investments in the C&I sector, and endorses the scale and maturity of the distributed generation sector in Africa. The secured funding is in addition to $40M in equity invested in CrossBoundary Energy by ARCH Emerging Markets’ Africa Renewable Power Fund in 2020.
“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,” said Pieter Joubert, President and Chief Investment Officer, CrossBoundary Energy.
“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 we seek to deliver an operational portfolio of over $300M in assets within the next 5 years,” added Joubert.
Aage Schaanning, Group Chief Financial Officer, KLP, commented on the investment saying; “We are pleased to support the further development of CrossBoundary Energy’s portfolio of distributed renewable energy systems and are confident that its strong business practices will boost sustainable economic development on the African continent and deliver stable and predictable returns for KLPs owners.”
CrossBoundary’s growing C&I portfolio in Africa
CrossBoundary Energy is currently delivering a portfolio of $188M in C&I renewable energy projects for 30 corporate customers across 14 countries in Africa. The projects comprise 150 MWp of solar PV assets, 50 MWh of battery energy storage assets, and 12 MW of wind assets. CrossBoundary Energy is the renewable energy provider of choice for a number of market-leading companies present in Africa, including Unilever, Diageo, Rio Tinto, Heineken, and AB InBev.
“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,” said Kristoffer Valvik, Investment Manager, Norfund.
“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,” Valvik added.