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Husk Power Systems (Husk) has announced securing $20 million in debt financing from the European Investment Bank (EIB) to bolster its operations in Nigeria. This marks a significant milestone as the first instance of a minigrid company accessing corporate-level debt, constituting the largest debt financing for minigrids in Sub-Saharan Africa to date.
The investment is earmarked for several key initiatives, including the construction of community solar minigrids, the installation of rooftop solar systems for commercial and industrial (C&I) customers, the expansion of appliance sales targeting households and small businesses, and the enhancement of value-added services such as agro-processing and e-mobility.
With over 20 operational minigrids already in Nigeria, Husk aims to escalate its presence significantly, setting a target of establishing at least 500 minigrids across the country within the next five years. Nigeria stands as the largest off-grid market globally, with approximately 90 million individuals lacking access to electricity, relying heavily on costly and environmentally harmful diesel generation.
The EIB financing forms a crucial component of a $100 million Series D funding round announced by Husk in October 2023.
Manoj Sinha, Co-Founder and CEO of Husk, emphasized the importance of accessible, long-term debt in driving the rapid expansion of decentralized, renewable, and climate-resilient energy infrastructure in Nigeria and Sub-Saharan Africa. Sinha expressed gratitude towards EIB for their foresight and anticipates a closer collaboration to positively impact millions of currently underserved individuals and businesses.
Ambroise Fayolle, Vice President of European Investment Bank (EIB), underscored the institution’s commitment to enhancing access to affordable and clean energy across Africa. He welcomed the opportunity to contribute $20 million towards the development of new minigrids in 150 rural communities across Nigeria in partnership with Husk Power Systems. Fayolle highlighted the benefits of reliable solar power and battery storage, which will replace costly diesel generators, benefiting thousands of homes and businesses. This collaboration follows recent EIB support for private-led clean energy initiatives in Chad, Uganda, Kenya, and Mozambique |
