Husk Power Systems, a leading net-zero energy company serving rural Africa and Asia, announced it has doubled its fleet of solar hybrid microgrids in Nigeria and is now present in 12 communities. The company has also developed a pipeline of nearly 100 additional microgrids for future development.
Since entering Nigeria in 2020, Husk now accounts for about 15% of the microgrids commissioned under the World Bank-funded Nigeria Electrification Project (NEP), a unit under the Rural Electrification Agency (REA) that is working to scale private sector solar microgrids. Husk is on track to complete about 20 sites in Nigeria by the start of 2023.
At full capacity the 12 microgrids owned and operated by Husk, all located in Nasarawa state, are expected to benefit more than 50,000 people. Husk is seeing 50% of diesel generators in its communities taken offline within the first year of a microgrid’s operations, amounting to hundreds of displaced generators. Customers are registering at least 30% reduction in monthly energy costs by switching from diesel to solar.
Husk’s first batch of six microgrids were launched in November 2021,. Those sites are experiencing high demand from both businesses and households. For example, average capacity utilization for Husk’s microgrids – a key measure of commercial viability – is already more than 50%, well above the industry average. Husk’s average monthly revenue per customer is also 2-3 times higher than the industry benchmark, based on data from the Africa Minigrid Developers Association (AMDA) published in 2022.
In addition to providing electricity, Husk has introduced appliance sales to the communities served by its microgrids, for both household and productive uses (such as health centers, water purification and agro-processing).
“Doubling our net-zero microgrid portfolio in less than a year is testament to Husk’s ability to play an important role in Nigeria’s Energy Transition Plan and its goal of providing energy for all within this decade,” said Olu Aruike, Country Director of Husk Nigeria. “With continued support from our host communities, governments at all levels and other partners, we will create a rural energy platform to help off grid and weak grid communities achieve their full economic potential.”
Earlier this year, Husk launched its Nigeria Sunshot initiative, with a target of building at least 500 sites by 2026 benefiting more than 2 million people and displacing 25,000 diesel generators.
According to recent Nigerian government data, solar microgrids represent the least-cost technology for 8.9 million of the 19.8 million additional connections needed in the country to achieve universal electrification by 2030. Under its Nigeria Sunshot Initiative, by 2026 Husk will be able to provide about 5% of those microgrid connections, and impact 2 million people, with the potential for much greater impact by the end of the decade.