Nigeria’s power sector is set to experience improvement as clean energy company, Husk Power Systems, which has spare headed rural electrification in the last 17 years, is set to establish 500 solar mini-grids over the next 5 years. The company has raised $103 million in Series D in equity and debt to achieve this.
The funds raised were $60 million in debt financing and $43 million in equity, which is the highest amount ever raised in the mini-grid sector. Companies that engaged in the equity funds are New Investors STOA Infra & Energy, the US International Development Finance Corporation (DFC) and Proparco, and existing investors Shell Ventures, Swedfund, and FMO.
Mini-grids can supply half a billion persons with clean power supply in the next 7 years. Once all regulations are put in order, they can supply cleaner and very affordable alternatives to energy which ultimately improves living for millions of people who lack access to electrical energy.
The Sub-Saharan region of the continent accounts for three-quarters of the world’s population who live in darkness due to the non-availability of power supply and renewable energy supply. Some other nations that fall in this category that can benefit immensely from solar or wind clean energy supply are South Sudan, Burundi, Chad, Malawi, Burkina Faso, Madagascar, and Tanzania.
Husk Power revealed through a communique that the funds raised position them as the leader in powering up rural areas in the Sub-Sahara area of the continent and South Asia, utilizing AI AI-activated framework of renewable energy provision.
Manoj Sinha, co-founder, and CE of Husk Power, said that about 200 mini-grids have been established in Nigeria and India. Husk Power plans to widen its operations to countries such as the Democratic Republic of Congo (DRC), Zambia, and Madagascar base on its newly raised funds
Since its launch in 2008, when it helped pioneer the community mini-grid industry (a category of distributed renewable energy infrastructure that provides first-time access to reliable, affordable, clean, and modern power), Husk Power has since evolved its business model, expanding beyond energy access to include the energy transition from fossil fuels to renewables.
Ever since its first project in 2008, after its launch the same year, which helped pioneer the mini-grid sector (a category of distributed renewable energy framework that supplied first-time access to continuous, affordable, clean, and modern power), Husk Power has since transformed its operations beyond energy adaptation energy conversion from fossil fuels to renewables.