Crossboundary Energy Access – which claims to be the continent’s first mini-grid financing facility – wants to unlock $11 billion in private capital to bring energy to 100 million people in sub-Saharan Africa. Raising capital has been a struggle despite mini-grids being lauded as a solid solution for electrification.
Fundraising has proven difficult to date, with the CBEA pointing out solar mini-grids, like all energy projects require a significant upfront investment and yield low returns over 10 to 15 years. Most mini-grid companies operate in an emerging asset class with smaller balance sheets, and struggle to raise large amounts.
Read full article here