The German Investment and Development Corporation (DEG) has announced the provision of a loan of $750,000 to Husk Power Systems.
The company is expected to use the loan to finance the construction of eight solar microgrids in Nigeria, as well as the expansion of its operations in India.
The $750,000 loan is provided under the up-scaling programme of the German Investment and Development Cooperation (DEG), a subsidiary of the German Development Agency (KfW).
This initiative, co-financed by the German federal ministry for economic cooperation and development, supports innovation in developing countries.
Part of the funding is for the expansion of Husk Power’s operations in India. “Access to affordable debt is essential for scaling up solar microgrids in Nigeria, where 90 million people live without access to electricity.
This ﬁnancing provides Husk with a solid foundation to unlock additional debt, including in local currency (the naira), this year and beyond,” says Manoj Sinha, Husk Power’s managing director.
The funding supports Husk’s strategy to build and commission 500 solar-powered microgrids in Nigeria by 2025. These installations will provide clean electricity to households, small businesses and commercial enterprises in rural areas.
The debt incurred by Husk Power Systems follows the mobilization of $10.3 million in 2022. The funds were also raised from the European Union’s (EU) Electrification Financing Initiative (EDFI) and the Indian Renewable Energy Development Agency (IREDA) for the installation of 200 solar micro-grids in India.
The Fort Collins, USA-based company has already successfully implemented 12 solar microgrid projects in Nigeria