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Increasing access to clean, reliable and affordable electricity in Africa

Project

Minigrid customer using rice milling machine
Signature date
Location
India
Financing tool
Equity investment
Financing amount (Euro)
2831390
Financing details
USD 3m Equity Investment
Customer
Husk Power Systems Inc.
Type of customer
Company
Project number
PIN1121
Environmental and social ranking
B+
Climate co-benefits
Project with climate co-benefits
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This project is carried out with the support of the European Union.

Legal notice EU (project)

The content of this project information sheet falls under the sole responsibility of the Proparco and does not necessarily reflect the opinions of the European Union. This information is given at the time of signature, without prejudice to any developments in the operation/project.

Proparco is investing in Husk, an Indian company providing decentralized energy solutions, to contribute to improving access to energy in Africa.

Client presentation

Founded in 2008, Husk Power Systems (“Husk”) provides decentralized renewable energy services and products to rural South Asia and Sub-Saharan Africa, and is the leading minigrid company. Husk started by using waste biomass from rice husks to power its minigrids. In 2014-2015, the company pivoted to hybrid minigrids that use solar energy during the day, biomass in the evening, and battery storage at night.

Today, Husk is established in two countries, India and Nigeria, where it has more than 200 minigrids. It is active in four business segments: 1) building, owning and operating hybrid minigrids, 2) EPC services for rooftop C&I and solar pumps, 3) sales and financing of productive-use machines and household appliances, and 4) value-added energy services including agro-processing and e-mobility. In India, Husk operates primarily in the northern states of Bihar and Uttar Pradesh, which suffer from irregular and poor quality grid power and rely heavily on diesel generation. With its minigrids, Husk provides access to reliable, affordable and clean energy to more than 10,000 customers (90% are MSMEs). In Nigeria, Husk focuses on isolated minigrids that deliver electricity for the first time to rural communities that are not connected to the national grid. Husk aims to have 1,600 minigrids in India and Africa (in particular in Nigeria) with Series D funding secured in October 2023.

Project description

The Series D fundraising for USD 43m in equity led by STOA Infra & Energy (USD 15m) and U.S. International Development Finance Corporation (DFC) (USD 15m), in which Swedfund, FMO, Shell Ventures and Proparco also participated, will enable the company to finance the scaling of its operations in India and Nigeria. 100% of the funds provided by Proparco are earmarked for Africa. 

Proparco’s investment is also being made under the Africa Renewable Energy Scale-Up Facility (ARESUF), which is partially funded by the European Union.

Project impact

The operation will contribute to the following Sustainable Development Goals (SDGs):

  • SDG 7: “Ensure access to affordable, reliable, sustainable and modern energy”. Over the next 5 years, it is estimated that Husk will add 300,000 new connections to a reliable source of renewable electricity 
  • SDG 8: “Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all”. The financing is expected to help support more than 5,000 jobs (direct and indirect)
  • SDG 13: “Take urgent action to combat climate change and its impacts”. The financing contributes to 28ktCO2eq of avoided emissions per year. 90% of this project qualifies as climate mitigation