Husk Power raises $6m from EU-funded EDFI ElectriFI for solar microgrids in rural India, Energy News, ET EnergyWorld
New Delhi: Husk Power Systems has announced that it will electrify an additional 80 communities in India through new debt financing of $6 million, announced today, under the Electrification Financing Initiative (EDFI ElectriFI), funded by the EU.
Husk Power is the operator of the largest fleet of solar hybrid microgrids in rural Asia and Africa. He said in a statement that the 80 solar micro-grids will benefit around 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 the production of polluting and expensive diesel,” the company said.
The $6 million long-term debt financing is one of the largest investments in the microgrid industry by EDFI ElectriFI, and is expected to de-risk financing facilities to rapidly scale the market by the developers.
“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 way,” said Manoj Sinha, Co-Founder and CEO, Husk Power.
He added that the company would achieve widespread zero net economic impact on businesses and households in rural India, and help MSMEs to double their incomes through reduced energy costs.
The 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.