Background and Market Opportunity
CrossBoundary Access, a pioneer in blended‑finance renewable energy projects, is partnering with Malagasy developer ANKA to deploy a USD 20 million solar PV + battery mini‑grid portfolio—marking CrossBoundary Access’s first expansion beyond Nigeria—and a major scale-up for ANKA’s decentralized energy footprint . With electricity access rates at only 36 % overall and 15 % in rural areas, Madagascar presents a compelling and under-served market with a deliberately designed regulatory framework active since the 2015 PPP law .
Project Scope & Social Impact
Set to deliver grid-quality electricity to over 62,000 Malagasy residents by 2026, this initiative spans homes, micro‑businesses, schools, and health centers . The combination of solar PV and battery storage will ensure reliable, 24/7 service—critical in regions where traditional grid extension is economically unfeasible. Projects like WeLight, financed by the EIB and ElectriFI, have demonstrated that mini‑grids are among the most cost‑effective options for rural electrification .
Financial Structure & Modelling Considerations
This USD 20 million allocation is structured via CrossBoundary’s blended‑finance model, mixing concessional debt, commercial equity, and grants—leveraging their proven track record, including a USD 25 million facility for mini‑grid development across Africa . From a financial modelling standpoint, key metrics include:
- IRR expectations under blended financing terms, considering CAPEX, OPEX, tariffs, and expected reliability.
- NPV calculations accounting for committed revenues from local institutions (PPA-like structures).
- Sensitivity analysis on variables like solar yield, storage degradation, grid interconnection risk, and tariff ceilings set by the Electricity Regulatory Office (ORE) .
- Risk-adjusted debt-service coverage ratios, given Madagascar’s historical grid losses (~31 %) and utility credit risk .
Financial modellers should design cash flow projections that account for daily solar generation profiles, battery cycling, tariff structures, and regulatory limits. ANKA’s “community-centric approach” ensures alignment with end-user demand profiles and credit behavior .
Strategic Fit & Scaling Potential
This project contributes to Madagascar’s ambitious national goal of 80 % electrification by 2030—targeting 11 million new connections via mini‑grids and solar kits—under a strategy that relies heavily on private sector investment . It reinforces CrossBoundary’s mission to reach 1 million people by 2025, leveraging open‑source financing tools and scaling distributed utilities across Africa .
For ANKA, this marks a transformational shift: moving from smaller, pilot-level projects into a portfolio model with formalized O&M frameworks and long-term financing. For CrossBoundary Access, it’s a strategic entry into a regulatory-friendly island market with significant development tailwinds.
Environmental & ESG Framework Alignment
The solar + storage model aligns seamlessly with ESG principles—minimizing lifecycle emissions, promoting energy access, and supporting SDGs related to poverty alleviation, education, and health. Reliable energy access mitigates issues like indoor air pollution from kerosene or charcoal and helps catalyze local economic development .
Conclusion
This USD 20 million solar mini‑grid initiative exemplifies impact-driven, financially disciplined scaling in Africa’s off-grid sector—aligning strategic, regulatory, and social frameworks. For modelers, it offers a compelling case to combine rigorous financial structures with high-impact outcomes. For communities, it brings transformative access to clean, reliable energy—catalyzing socio-economic uplift.
đź“Š As modelers and investors, replicating such models across high-potential markets with supportive regulation can crystallize pathways to universal energy access and strong returns.
Finteam 