Financing Nigeria’s energy infrastructure

HUSK Power Systems, a leading mini-grid company, recently closed a $20 million debt funding from the European Investment Bank (EIB) to scale its operations in Nigeria. The Co-Founder and CEO, Manoj Sinha, discussed the importance of affordable, long-term debt in rapidly scaling decentralized, renewable, and climate-resilient energy infrastructure in Nigeria. With a current footprint of 25 mini-grids mainly in Nassarwa and Plateau states, HUSK aims to expand to 500 mini-grids in less than five years. The funding from EIB will help increase their footprint to approximately 200 mini-grids, providing 100% renewable energy to rural areas in Nigeria that currently rely on diesel generators. Nigeria holds the world's largest off-grid market, with an estimated 90 million people lacking access to electricity. The goal of reaching 500 communities is just the beginning, as tens of millions more are reliant on unreliable electricity sources like diesel generators. To truly serve the population in need, investments in the tens of millions of dollars are required to deploy tens of thousands of mini-grids across the country. The $20 million debt funding from EIB is part of a larger $100 million Series D announced by HUSK last year, with a significant portion earmarked for Nigeria. The company plans to scale its operations to 5,000 mini-grids by 2030, with ambitions to invest hundreds of millions of dollars in the Nigerian market alone. The ultimate goal is to address the needs of the 100 million people without access to electricity in Nigeria. Despite facing challenges such as the depreciation of the Naira, HUSK Power Systems has found support in Nigeria's policies and regulations, particularly with the Rural Electrification Agency (REA). Sinha praised the supportive and forward-looking approach of the REA, highlighting the positive relationship that has allowed the company to scale its efforts in the country. In conclusion, HUSK Power Systems' commitment to providing sustainable and affordable energy solutions in Nigeria underscores the urgent need for investments in renewable energy infrastructure. With the support of partners like EIB and a clear vision for expansion, the company is set to play a significant role in improving energy access and driving economic development in underserved communities across Nigeria.