U.S.-based clean energy firm Husk Power Systems has received a loan of $749,000 from DEG, a German development finance institution, to build eight new community solar microgrids in Nigeria.
The company says the microgrids will help connect more than 500 commercial and residential customers, reduce the use of diesel generators by 400, and create around 40 new local jobs.
This is the first debt that Husk has raised for its business in Nigeria, where it currently has 12 operational microgrids and a goal of building 500 by 2026.
“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.”
The five-year loan will also be used to support the expansion of its operations in India, the company notes.
The funding from DEG's Up-Scaling Program, which is co-financed by Germany’s Federal Ministry for Economic Cooperation and Development, follows Husk's closure of debt totaling $10.3 million from EU-funded impact investment facility EDFI-ElectriFI and Indian Renewable Energy Development Agency in 2022 to build over 200 microgrids in India.
“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,” Petra Kotte, Head of Banking and German Business Division, DEG, said.
Husk Power Systems is a Fort Collins, Colorado-based company that provides net-zero energy services in rural Asia and Africa.