Husk Power Systems will electrify 80 new communities in rural India

The EU-funded Electrification Finance Initiative (EDFI ElectriFI) has signed a microgrid loan facility with Husk Power Systems to spur net-zero economic growth in 80 new communities in rural India .

Husk Power Systems, operator of the largest fleet of solar hybrid microgrids across rural Asia and Africa, will electrify 80 additional communities in India with new $6 million debt financing from EDFI ElectriFI, read the Husk Powering Possibilities press release.

The 80 solar micro-grids will benefit approximately 60,000 people and connect nearly 10,000 new customers. This will allow Husk to double its customer base of micro, small and medium-sized enterprises (MSMEs), which drive rural economic activity but still rely heavily on dirty and expensive diesel production.

The new microgrids will displace a significant amount of diesel generators, avoiding the equivalent of 11,640 tonnes of added CO2.

In addition to providing electricity to communities, Husk’s platform strategy to address the entire rural energy ecosystem provides access to productive and lifestyle appliances, enabling customers to buy affordable, modern and efficient devices for professional and home use.

The $6 million long-term debt financing is one of EDFI ElectriFI’s largest investments in the microgrid industry. This is a clear indication that investing in top developers like Husk helps de-risk funding facilities to move the market quickly, the statement added.

This investment complements Husk’s largest local currency debt financing in the Indian Renewable Energy Development Agency (IREDA) microgrid industry, announced earlier this year.

Prior to the EDFI ElectriFI debt, Husk Power already had about 150 net zero microgrids in operation in India. Husk also has a presence in Nigeria, with plans to expand into sub-Saharan Africa.

“The EDFI ElectriFI debt will enable Husk to reach positive EBITDA before the end of 2022, and demonstrates our increased ability to absorb larger amounts of long-term, low-cost debt, which is necessary to scale micro -grids in a cost-effective manner. More importantly, we will achieve widespread net zero economic impact on businesses and households in rural India, and help MSMEs to double their incomes through reduced energy costs,” said said Manoj Sinha, co-founder and CEO of Husk Power.

“Mini-grids are at the heart of EDFI ElectriFI’s strategy. We have been closely following Husk’s progress over the past few years and are very pleased to add this leading developer to our portfolio. The new facility will enable the company to reach the next stage of growth, achieve profitability and create long-term impact in rural India,” said Corentin Billiet, ElectriFI Chief Investment Officer, EDFI Management Company.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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