Funding

Husk Power Systems Secures $750,000 Funding To Kick Off Solar Project

Nigerian mini-grid player, Husk Power Systems, has secured the sum of $750,000 in funding for solar mini-grid projects in Nasarawa State made available by Germany’s development finance institution (DEG).

The Plan: Husk plans to establish 8 new community solar microgrids in Nasarawa state. DEG allocated the funds from its Up-Scaling Program, which is co-financed by the Federal Ministry for Economic Cooperation and Development. According to the company, the financing is the first debt raised by Husk for its business in Nigeria, where the company currently has 12 operational microgrids and a target of building 500 mini-grids by 2026. The loan can be paid in five years. 

The Benefits: The 8 microgrids to be set up in Nasarawa state are expected to 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. 

  • The 8 solar mini-grids will be rounded off in the first half of 2023 (H1 2023) and will benefit 50,000 people across 8 communities in Nasarawa state.  
  • The solar mini-grid projects will also reduce at least 600 tons of carbon emissions (CO2e). This will be executed through the replacement of over 100 diesel generators across the 8 communities where the mini-grids will be set up. 

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Referring to the funding as cost-effective debt, Husk Power co-founder, Manoj Sinha said the financing provides the company with a solid foundation for unbolting additional debt, including local currency debt, in 2023 and beyond. 

  • Nasarawa state as a location of interest: Since Husk Power Systems started doing business in Nigeria in 2020, the company has zeroed in on Nasarawa state as a location of interest. In October 2022, the company announced that it had doubled its solar mini-grid fleet in Nasarawa state.  
  • In Nasarawa state, Husk has already introduced appliance sales to the communities served by its microgrids, for both household and productive uses (such as health centres, water purification, and agro-processing). 

NOTE: Husk Power Systems was the first company to simultaneously launch multiple microgrids in Nigeria. The company plans 500 mini-grid sites in Nigeria by 2026. 

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