Husk Power secures USD 20m in EIB financing for minigrids in Nigeria

Husk Power Systems, a US minigrid company that focuses on rural and peri-urban Asia and Sub-Saharan Africa, has closed USD 20 million (EUR 18.5m) in debt financing from the European Investment Bank (EIB) to ramp up its activities in Nigeria.

The financing, which is part of a USD-100-million Series D raise in October 2023, marks the single largest debt financing for minigrids in Sub-Saharan Africa, the company said last week.

The funds will be used for the deployment of community solar minigrids and rooftop solar for commercial and industrial customers, as well as the expansion of appliance sales to households and small businesses and of value-added services such as agro-processing and e-mobility.

Fort Collins, Colorado-based Husk now has more than 20 minigrids in operation in Nigeria and aims to increase this number to at least 500 in the next five years. According to the company, Nigeria is the world’s largest off-grid market, with about 90 million people lacking electricity access.

“The European Investment Bank is committed to strengthening access to affordable and clean energy across Africa and pleased to provide USD 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,” said EIB vice president Ambroise Fayolle.

(USD 1 = EUR 0.925)

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