Mini-Grid Leader Husk Power Systems Secures $43M in Equity Investment for Expansion in Nigeria and India
Husk Power Systems, a leader in mini-grid solutions, has secured a $43 million equity investment from STOA, DFC, Proparco, FMO, and other existing investors. The funding will be used to accelerate the rollout of mini-grids in rural and peri-urban areas of Nigeria and India, providing increased access to clean, affordable, reliable, and modern energy. Husk Power Systems, known for its innovative approach to community solar mini-grids, aims to double its operational footprint within the next 12 months.
- Investment Details:
- STOA, DFC, and Proparco have joined FMO and other existing investors in a $43 million equity investment in Husk Power Systems. The funding will support the expansion of mini-grids in Nigeria and India.
- Accelerating Mini-Grid Rollout:
- The investment aims to accelerate the rollout of mini-grids in rural and peri-urban areas of Nigeria and India. This initiative is expected to enhance access to clean, affordable, reliable, and modern energy in these regions.
- Impact on Energy Transition:
- Husk Power Systems builds, owns, and operates mini-grids, contributing to economic growth in rural India and Africa. The company’s approach combines solar energy, batteries, and backup sources to provide round-the-clock access to clean and affordable power.
- Company’s Evolution:
- Since its founding in 2008, Husk has evolved its business model beyond energy access to facilitate the transition from fossil fuels to renewables. The company offers energy-efficient appliances, turnkey commercial and industrial rooftop solar solutions, and various low-carbon and climate-resilient energy services.
- Financial Performance:
- In 2022, Husk achieved its first profitable quarter in both Africa and Asia, with positive Q4 EBITDA in its primary markets, Nigeria and India. The company’s recent initiatives include a public-private partnership proposal and the ‘Africa Sunshot’ initiative to contribute to universal energy access by 2030.
- Industry Impact:
- The investment is seen as a positive signal to governments and investors, indicating the bankability of the mini-grid industry. Husk’s AI-powered renewable energy platform aims to unleash a rural industrial revolution in Sub-Saharan Africa and India.
Husk Power Systems’ latest equity investment of $43 million is poised to significantly impact the expansion of mini-grids in Nigeria and India. The company’s innovative approach to providing clean and affordable energy, coupled with its evolving business model, positions it as a key player in advancing universal energy access and contributing to the rural industrial revolution in Sub-Saharan Africa and India.