Captive power projects gain investment security

July 16, 2025

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The Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group, has signed an agreement with CrossBoundary Energy (CBE) to set up a pot of $495 million in guarantees that CBE can draw on for its investments. This is meant to protect CBE’s investments against currency inconvertibility and transfer restriction risks for up to 15 years.

  • The guarantee will be implemented using a portfolio-based structure. This will enable CBE to expand its operations across approximately 100 projects, including those in 11 low-income and four conflict-affected countries.

  • MIGA's guarantee helps reduce risks associated with these projects and lower financing costs. In turn, this will decrease the overall cost of generating electricity, potentially leading to more affordable tariffs for consumers.

  • Our take: De-risking investments makes renewables more appealing…  Read more (2 min)

The Lagos State Government plans to build a $400 million Waste-to-Energy plant in nearby Epe to tackle the state's waste and energy problems. The plant is set to be delivered through a private sector-led design, build, finance and operate model. This comes after the unbundling of the national electricity market, allowing state governments to generate their own power.

  • The project aims to provide a long-term solution to dwindling landfill capacity and insufficient power supply. It will generate electricity for up to two million homes and businesses.

  • Nigeria joins a growing list of countries converting waste into energy. They include South Africa, Ethiopia and Ivory Coast, which all recently announced their first grid-connected waste plant.

  • Our take: Africa's urbanisation will increase waste and thus the potential for power generation… Read more (2 min)

Financing costs of solar kits have stabilised

Loan rates for buying solar home systems in Kenya, South Africa, Nigeria and Egypt have all remained the same in July, marking the first stable month after persistent fluctuations since early 2025. South Africa had experienced especially sharp volatility, with solar financing rates doubling to 13.5% annually last month. Is the market now entering a period of stability?

  • Newfound solidity in solar home system interest rates likely signals growing market maturity. This enables better risk management and should result in greater investor confidence in the PAYGo model.

  • Renewables Rising tracks and analyses financing costs for solar home systems in local currencies in four representative countries: Kenya, South Africa, Egypt and Nigeria and updates data on a monthly basis. 

  • Our take: Inevitable tax, currency and subsidy changes can upend stability overnight… Read more (2 min)

Solar Mtaani trainees visit the Power and Energy Expo 2025 in Nairobi, Kenya

 

Events

🗓️ Learn about the hydrogen water connection (Jul 24)

🗓️ Participate  in the Smart Metering Reshapes Water Security webinar (Aug 7)

🗓️ Take part in the African Engineering Week Conference (Sep 13)

Jobs

👷‍♀️ Lead Engies' Technical Project activities (South Africa)

👨🏻‍💼 Join Husk Power Systems as a Customer Engagement Associate (Nigeria)

💼 Become SNV’s Deputy Country Finance Director (Ethiopia)

Various 

💡 Gaia assumes control of AIIM’s Holdings in two REIPPPP solar projects

🔌 Solarise Africa completes 1 MW solar installation in South Africa

🔋 New solar training facility debuts in Rwanda via China partnership

💵 Chinese solar giants Tongwei, Longi, JA Solar report big first-half losses

Seen on LinkedIn 

De Wet Taljaard, Technical Advisor at Investec, says, “By integrating renewable energy solutions, such as solar and BESS, SEZs can reduce operational costs and enhance their sustainability, improving competitiveness and attracting South African manufacturers.”