Husk Power Systems has revealed it has obtained $20 million in debt financing from the European Investment Bank to scale its operations in Nigeria.
This development was revealed in a statement made available to the media on Thursday by Husk Power Systems.
This is the first time that a minigrid company has accessed corporate-level debt, and also the single largest debt financing for minigrids in Sub-Sahara Africa.
The investment will fund construction of community solar minigrids in Nigeria, installation of rooftop solar for commercial and industrial customers, expansion of appliance sales to households and small businesses and the scaling of value-added services such as agro-processing and e-mobility.
Also Read:
- Oyo moves against errant herdsmen, illegal miners
- Kogi reacts as all passengers, driver inside bus abducted
- Kidnapping: Police deploy squad on Sagamu-Benin Expressway
- Sanwo-Olu swears in eight new Permanent Secretaries
- Another accident under Karu bridge after death of 10
Currently, Husk has more than 20 minigrids operational in Nigeria, and has set a target of having at least 500 minigrids in the country within the next five 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.
The EIB financing is part of a $100 million Series D announced by Husk in October 2023.
Manoj Sinha, Husk’s Co-Founder and CEO, commented: “Affordable, long-term and sufficient debt is critical for rapidly scaling decentralised, 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, said: “The European Investment Bank is committed to strengthening access to affordable and clean energy across Africa and pleased to provide $20 million for the development of new minigrids 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.”
Follow The Eagle Online Channel on WhatsApp
