Husk Power Systems, a leading rural energy services company has built 8 new community solar microgrids across Nigeria to expand the company’s operations.
The company secures funding from Germany’s development finance institution DEG to build and support the expansion of the company’s operations.
Husk power provides cheap reliable, 100% renewable power to businesses, households and institutions energy in weak-grid and off-grid communities in Africa and Asia.
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Energy access to 500 homes and businesses in Nigeria
The 8 microgrids in Nigeria will connect more than 500 residential and commercial customers and reduce the number of diesel generators in use by 400 while creating about 40 new direct local jobs.
Referring to the financing, Petra Kotte, Head of Banking and German Business Division, DEG, said: “Husk is exactly the type of company we’re looking for at the Up-Scaling Program, which supports innovative Greentech business models in emerging markets that demonstrate high development impact and a significant reduction of carbon emissions.”
“Access to affordable debt is critical to scaling solar microgrids in Nigeria, home to 90 million people living without access to electricity,” said Manoj Sinha, Co-Founder and CEO Husk. “This financing provides Husk with a solid foundation for unlocking additional debt, including local currency debt, this year and beyond.”
Husk power loan plan
DEG allocated Husk power a 5-year loan amounting to US $749,000 from its Up-Scaling Program, which is co-financed by the Federal Ministry for Economic Cooperation and Development.
The DEG financing is the first debt raised by Husk for its business in Nigeria, where the company currently has 12 operational microgrids.
Under the Up-Scaling Program, DEG provides funds for innovative and creative investments of small and medium-sized enterprises (SMEs) in developing countries like Nigeria. DEG does it in partnership with the Federal Ministry for Economic Cooperation and Development of Germany.
Other Nigeria projects
The official statement of Husk Power Systems confirms that the US firm is already operating 12 micro-grids in Nigeria. The company’s objective is to raise its business to 500 micro-grid operations by 2026.
Connecting hundreds of homes in India and Africa
Husk power solution design, build and operate the lowest-cost hybrid power plant and distribution network in India and Africa, offering customers a flexible ‘pay-as-you-go’ energy service using a mobile-enabled smart metering system to support national electrification plans.
This enables most people in rural areas to have access to cheap solar home systems, providing DC power for lighting and cell phone charging and could power off-the-shelf high-quality appliances, such as refrigerators, freezers or water purification units. Local enterprises – shops, rice mills, welders – will also have access to reliable three-phase AC that enables major improvements in productivity and cost-efficiency.
This allows consumers to use any appliance and benefit from more productive hours in the day, creating choices and improving their quality of life.
In addition to providing access to off-grid energy, Husk also sells household and commercial appliances to local communities, from TVs and freezers to biomass gasification systems to power Ag-processing units.
They also train local communities on installation and product use in order to experience the greatest benefit from access to reliable energy.