- Husk Power Systems secures $20 million in debt financing from the European Investment Bank (EIB) to bolster Nigerian operations.
- The funds will drive various initiatives, notably the construction of community solar mini-grids and the installation of rooftop solar systems for commercial and industrial clients.
- This financing signifies a significant leap forward in scaling renewable energy infrastructure, addressing the critical need for reliable, sustainable power solutions in Nigeria and beyond.
On Thursday, March 28, 2024, Husk Power Systems announced $20 million in debt financing from the European Investment Bank (EIB) to expand Nigerian operations.
This marks the first instance of a mini-grid company accessing corporate-level debt. It is the largest debt financing ever secured for mini-grids in Sub-Saharan Africa.
The influx of funds will be directed towards several key initiatives. These include constructing community solar mini-grids and installing rooftop solar systems for commercial and industrial (C&I) customers.
It also includes expanding appliance sales to households and small businesses and enhancing value-added services such as agro-processing and e-mobility.
Presently, Husk operates over 20 mini-grids across Nigeria. The company has set an ambitious target of establishing at least 500 mini-grids within the country over the next five years.
Nigeria represents the world’s largest off-grid market. The country has approximately 90 million people without access to electricity.
Many of the population relies heavily on costly and environmentally harmful diesel generators. The EIB financing forms part of a larger $100 million Series D funding round announced by Husk in October 2023.
Manoj Sinha, Co-Founder and CEO of Husk stressed the vital role of affordable, long-term debt in rapidly expanding decentralized, renewable, and climate-resilient energy infrastructure.
Sinha expressed gratitude towards EIB for their forward-thinking approach and eagerness to collaborate closely to positively impact millions of unserved and underserved individuals.
Ambroise Fayolle, Vice President of the European Investment Bank, highlighted the institution’s commitment to enhancing access to affordable and clean energy across Africa.
He expressed pleasure in providing $20 million towards the development of new mini-grids in 150 rural communities across Nigeria in partnership with Husk Power Systems.
Fayolle underscored the benefits of this initiative, noting that thousands of homes and businesses will gain access to more reliable solar power and battery storage, thereby reducing reliance on expensive diesel generators.