Husk Power Systems, a leading provider of renewable energy solutions, has announced a significant milestone with the acquisition of $20 million in debt financing from the European Investment Bank (EIB) to bolster its operations in Nigeria.
The groundbreaking development marks the first instance of a mini-grid company accessing corporate-level debt. It represents the most significant debt financing ever secured for mini-grids in Sub-Saharan Africa.
Manoj Sinha, Co-Founder and CEO of Husk, said in a statement: “The infusion of funds from the EIB will be channelled towards several strategic initiatives to advance Husk’s presence and impact in Nigeria.
“Key priorities include the construction of community solar mini-grids, installing rooftop solar systems for commercial and industrial (C&I) customers, expanding appliance sales to households and small businesses, and augmentation of value-added services such as agro-processing and e-mobility.
“Husk operates over 20 mini-grids across Nigeria. With the newly secured financing, we will scale up our operations significantly, with a target of establishing at least 500 mini-grids within the country over the next five years.”
Nigeria is the world’s largest off-grid market, with an estimated 90 million people lacking access to electricity.
The reliance on costly and environmentally detrimental diesel generators underscores the urgent need for scalable, sustainable energy solutions.
Sinha emphasized the pivotal role of affordable, long-term debt in catalyzing the expansion of decentralized, renewable, and climate-resilient energy infrastructure.
He expressed gratitude to the EIB “for its visionary approach and eagerness to collaborate closely to impact millions of unserved and underserved individuals across Nigeria positively.”
Ambroise Fayolle, Vice President of the European Investment Bank, reiterated the institution’s steadfast commitment to advancing access to affordable and clean energy across Africa.
He lauded the partnership with Husk Power Systems, affirming that the $20 million investment will pave the way for developing new mini-grids in 150 rural communities across Nigeria.
“This initiative is expected to bring tangible benefits to thousands of homes and businesses, enabling them to access more reliable solar power and battery storage while reducing dependence on expensive diesel generators,” Fayolle noted.
Recall that Nigeria’s Minister of Power, Chief Adebayo Adelabu, recently expressed concern on Friday about Nigeria’s suboptimal performance of all 10 Independent Power Plants, revealing that they operate at less than 15 per cent capacity.
During the electricity and energy access session at the Nigeria International Energy Summit in Abuja, Adelabu acknowledged the challenges faced in the power sector, emphasizing the government’s commitment to enhancing power supply nationwide.
He lamented that the inadequate power supply was hindering citizens from enjoying a good quality of life.
