January 24, 2025

CrossBoundary Energy receives $40m in funding

January 23, 2025

Norwegian Investment Fund (Norfund) has invested $40 million in CrossBoundary Energy, an investment platform focused on renewable energy in Africa. This doubles Norfund's investment in the company to $80m and comes a month after CrossBoundary secured  $140 million in debt funding from the Standard Bank of South Africa.

  • CrossBoundary Energy operates in 18 African countries and has a portfolio of around $680 million. Its projects include 500 MW of solar, wind and thermal assets and over 600 MWh of battery energy storage solutions.

  • The company has recently financed Rio Tinto mines in Madagascar to provide clean energy for mining. Phase one, with 8 MW of power, is already completed. Phase two will add 22 MW of solar and wind energy. Last year, it partnered with EV company Ampersand to provide solar energy for their EV charging.

  • Our take: The C&I customer segment is particularly attractive due to its strong cash flow… Read more (2 min)

South Africa's renewable energy incentive is coming to an end in a month's time after two years. This incentive allowed businesses to claim an upfront deduction of 125% of the cost incurred to acquire qualifying assets used in the generation of electricity (including supporting structures) against their taxable income.

  • The incentive was implemented in March 2023 when South Africa was experiencing the worst load shedding in its history. This policy proved instrumental in driving a twenty-fold increase in annual solar installations within the commercial and industrial sector, reaching 2.2 GW by 2024.

  • Another incentive that targeted residential customers between March 2023 and February 2024 allowed customers installing solar panels to claim a rebate for 25% of the cost of new and unused PV panels, up to a maximum of $820.

  • Our take: Incentives increase affordability, and it has worked well in moving solar energy from a nascent to a mature market. It's now time for South Africa to let market forces control demand and pricing… Read more (2 min)

Morocco and Mauritania have committed to deepening their electricity and renewable energy collaboration through a newly signed memorandum of understanding. This reflects a growing trend among African countries trying to trade in electricity, although less than 3% of power is internationally traded.

  • Morocco has been investing heavily in renewable energy generation and targets to achieve a 52% share of renewables by 2030. The deserts and the coastline are its go-to sources of wind and solar energy. Deserts' proximity to neighbouring countries like Algeria and Mauritania makes it even easier to build cross-border power transmission lines.  

  • Morocco recently invested over $54 million to upgrade its power grid by connecting a new solar plant to the national grid through a 400 kV line and targets to export excess to neighbouring countries.

  • Our take: International electricity trading, though still at a low level, is showing promise with recent developments… Read more (2 min)

_________//___________

Technicians installing solar panels at the Chisamba Power Plant in Zambia

Events

📅 Nairobi to host 7th Edition of PowerTech Africa Conference  (Jan 30 & 31)

📅 Arusha to host East Africa Energy Cooperation Summit (Jan 28 - 30)

📅 Dar es Salaam to host Renewable Energy Week 2025 (May 26 - 29)

Jobs

💼 Africa Minigrid Developers Association seeks a Regional Coordinator  (Nigeria)

💼 MegaPower seeks a Solar Sales Engineer (North Africa)

💼 MegaPower seeks a Business Development Officer (North Africa)

Various 

🌎 Lower Maguduza Hydro Power Plant reaches financial close

🌎 ClimaFii Alliance is calling startups and SMEs to join the next cohort

🌎 EDF selected for a battery storage tender in South Africa

Seen on LinkedIn 

Naomi Wagura, Director of the Global Alliance for People and Planet, says, "By engaging governments, utilities, developers, and financiers, we're driving systemic change, fostering an ecosystem where African industries and communities thrive and innovate through sustainable energy."

____________________