Husk Power Systems has obtained $20 million in debt financing from the European Investment Bank (EIB) to scale its operations in Nigeria. The investment will fund construction of community solar mini-grids in Nigeria, installation of rooftop solar for commercial & industrial (C&I) customers, expansion of appliance sales to households and small businesses and the scaling of value-added services such as agro-processing and e-mobility.
This is the first time that a mini-grid company has accessed corporate-level debt, and also the single largest debt financing for mini-grids in Sub-Saharan Africa.
Currently, Husk has more than 20 mini-grids operational in Nigeria and has set a target of having at least 500 mini-grids in the country within the next 5 years. Nigeria is the world’s largest off-grid market, with about 90 million people still living without access to electricity and a massive dependence on expensive and polluting diesel generation.
Manoj Sinha, Husk’s Co-Founder and CEO, commented: “Affordable, long-term and sufficient debt is critical for rapidly scaling decentralized, renewable and climate-resilient energy infrastructure in Nigeria and the rest of Sub-Saharan Africa. EIB has taken a leadership position in filling this need. We are grateful for EIB’s foresight, and we look forward to working with them more closely to positively impact millions of people who are currently unserved and underserved.”
Referring to the financing, Ambroise Fayolle, Vice President, European Investment Bank (EIB) said: “The European Investment Bank is committed to strengthening access to affordable and clean energy across Africa and pleased to provide USD 20 million for the development of new mini-grids in 150 rural communities across Nigeria by partner Husk Power Systems. Thousands of homes and businesses will benefit from more reliable access to solar power and battery storage that eliminates the need for more expensive diesel generators. This latest cooperation follows recent EIB backing for private-led clean energy generation in Chad, Uganda, Kenya and Mozambique.”