Husk Power Systems has secured $749,000 from Germany’s development ﬁnance institution DEG to build eight new community solar microgrids in Nigeria, and to support the expansion of the company’s India operations.
The company said in a statement on Thursday that DEG allocated the funds from its Up-Scaling Program, which is co-ﬁnanced by the Federal Ministry for Economic Cooperation and Development.
It said the five-year loan followed the successful closure of a debt totalling $10.3 million from EDFI-ElectriFI and IREDA in 2022 to build over 200 microgrids in India.
The DEG 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 by 2026, according to the statement.
The company said the eight microgrids in Nigeria would connect more than 500 residential and commercial customers, reduce the number of diesel generators in use by 400, while creating about 40 new direct local jobs.
“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,” the Head of Banking and German Business Division at DEG, Petra Kotte, was quoted as saying.
“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 of Husk. “This ﬁnancing provides Husk with a solid foundation for unlocking additional debt, including local currency debt, this year and beyond.”