Tuesday, October 21, 2014

The Distributed Generation Funding Facility

CrossBoundary (1) has recently formed the Distributed Generation Funding Facility, an independent investment platform to invest into medium scale renewable distributed generation in East Africa.

Many businesses in Africa generate a significant portion of their own electricity through inside-the-fence diesel generation. Due to the cost of diesel, it would be economically and environmentally optimal for these businesses to switch to renewable generation through solar and other alternatives. However, businesses are ill equipped to take the financial and technical risk to finance a conversion to renewable inside-the-fence generation. At the same time, capital lacks a standardized platform to access these profitable but relatively small transactions.

To address this finance gap, CrossBoundary has created the Distributed Generation Funding Facility, a platform to aggregate finance for medium scale renewable self-generation. The Facility will finance renewable generation projects (.5MW-5MW) that serve commercial customers in Africa such as off-grid light manufacturing, cell towers, farms, remote hospitals, eco-lodges and beverage bottlers. The goal is to enable the delivery of energy-as-service and assist to unlock the latent opportunity for renewable own-generation in Africa.

(1) CrossBoundary LLC provides investment and economic development services in frontier markets and conflict zones. Their clients include governments, development finance institutions, private equity firms, Fortune 100 companies, and research institutions. 

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