Clean energy company Husk Power Systems on Thursday announced securing $20 million in debt financing from the European Investment Bank (EIB), the lending arm of the European Union, to scale its operations in Nigeria. The EIB financing is part of a $100 million Series D announced by Husk in October 2023.
According to the company, 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-Saharan Africa.
Commenting on the debt raised, Manoj Sinha, Co-Founder and CEO, Husk, said, “Affordable, long-term and sufficient debt is critical for rapidly scaling decentralized, 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.”
The debt will be deployed towards the construction of community solar minigrids in Nigeria, installation of rooftop solar for commercial & industrial (C&I) customers, expansion of appliance sales to households and small businesses and the scaling of value-added services such as agro-processing and e-mobility.
Currently, Husk has over 20 minigrids operational in Nigeria. The company has targeted at least 500 minigrids in the country in the coming 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,” Husk said in a statement.
“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,” said Ambroise Fayolle, Vice President, European Investment Bank (EIB).
Husk’s AI-back energy platform provides 24/7 renewable power to households, commercial customers, institutions and small factories. The company also delivers a range of other products and services, including e-commerce and credit-financing of branded appliances for home and commercial use, as well as community-based solutions for e-mobility and the agricultural value chain.
