Press Release: CrossBoundary Energy Access and Engie Energy Access Sign Largest Mini-Grid Project Finance Transaction in Africa to Build $60 Million of Mini-grids in Nigeria
CrossBoundary Energy Access Nigeria (CBEA) and ENGIE Energy Access Nigeria (ENGIE) are announcing a project finance agreement to build a $60 million portfolio of minigrids that will connect over 150,000 people to electricity in Nigeria.
ENGIE has developed a pipeline of mini-grids to build over the next four years. CBEA will finance all of the development and construction activities and will own the projects. ENGIE will provide long-term operations and maintain services for the mini-grids and ensure that the residential, commercial, and productive use customers receive clean, reliable electricity while delivering high-quality and customer centric services.
CBEA will provide the private capital for the transaction. CBEA will invest this private capital alongside the Performance Based Grant (PBG) funded by the World Bank and administered by Rural Electrification Agency (REA) and the Nigeria Electrification Project (NEP).
ENGIE, expanding on its energy access track record across Africa, sees huge value in the development of the mini-grid business in Nigeria. The agreement represents further progress in the African mini-grid space as it will expand access to energy to grid-unserved communities, creating economic growth and increasing socio-economic welfare in the community.
CBEA and ENGIE are excited that this innovative financing approach will provide electricity to more than 150,000 people in Nigeria and can be replicated across Africa.
Photo courtesy of andreas160578.
Source: ENGIE Energy Access Nigeria (link opens in a new window)