$750,000 have been secured for Husk Power solar mini-grid projects in Nigeria. This was revealed by Husk Power Systems. With this funding, the company intends to build 8 additional communities of solar microgrids in Nasarawa state. The Federal Ministry for Economic Cooperation and Development co-finances DEG allocated the funds from its Up-Scaling Program that is co-financed by the Federal Ministry for Economic Cooperation and Development.
According to the company, the loan which is payable in five years represents the first loan Husk has ever acquired for its operations in Nigeria, where it now operates 12 microgrids. Husk plans to construct 500 mini-grids by the year 2026.
Petra Kotte, a DEG official, said, “Husk is exactly the kind of firm we are looking for. Under the Up-Scaling program which supports innovative green technology business models in the markets. Emerging markets with large reductions in carbon emissions and high development impacts.”
Benefits of Husk Power solar mini-grid projects in Nigeria
It is anticipated that the 8 microgrids to be installed in Nasarawa state will connect more than 500 residential and commercial consumers. As well as eliminate 400 diesel generators from use, and add roughly 40 new direct local jobs.
The first half of 2023 (H1 2023) will see the completion of the solar mini-grids in Nasarawa state, which will benefit 50,000 people in 8 localities. Furthermore, the solar mini-grid projects in Nigeria will also lessen carbon emissions by at least 600 tons (CO2e). In order to accomplish this, over 100 diesel generators will be removed from service across the eight communities where the mini-grids will be installed.
Additionally, Husk Power co-founder Manoj Sinha described the funding as reasonable debt. And said it provides the company with a strong basis for unlocking additional debt. Including local currency debt, in 2023 and beyond.