- The German InvDEG) is providing a loan of USD 750,000 to Husk Power Systems.
- The company will use the loan to finance the construction of eight solar microgrids in Nigeria, as well as the expansion of its operations in India.
Husk power receives a $750,000 loan provided under the Up-Scaling programme of the German Investment and Development Cooperation (DEG), a subsidiary of the German Development Agency (KfW). This initiative, co-financed by the German Federal Ministry for Economic Cooperation and Development, promotes development-country innovation. Husk Power Systems incurred debt following the mobilization of $10.3 million in 2022.
The European Union’s (EU) Electrification Financing Initiative (EDFI) and the Indian Renewable Energy Development Agency (IREDA) also contributed funds to the installation of 200 solar microgrids in India. However, the DEG loan will fund the electrification of eight Nigerian communities.
Part of the funding is for the expansion of Husk Power’s operations in India. “Access to affordable debt is essential for scaling up solar microgrids in Nigeria, where 90 million people live without access to electricity. This financing provides Husk with a solid foundation to unlock additional debt, including in local currency (the naira), this year and beyond,” says Manoj Sinha, Husk Power’s managing director.
Husk’s strategy of building and commissioning 500 solar-powered microgrids in Nigeria by 2025 is supported by the funding. These installations will provide clean electricity to rural households, small businesses, and commercial enterprises. The company, based in Fort Collins, Colorado, has already completed 12 solar microgrid projects in Nigeria.