Husk Power Systems says it will deploy 1,000 mini-grids in Nigeria as part of its Africa sunshot initiative.
The initiative was launched during the Africa Climate Summit (ACS) in Nairobi, Kenya.
The company said this is in order “to fast track climate resilient economic growth in rural sub-Saharan Africa”.
WHAT IS A MINI-GRID?
A mini-grid is an aggregation of loads and one or more energy sources to provide electricity.
A modern mini-grid may include renewable and fossil fuel-based generation, energy storage, and load control.
Husk said it intends to mobilise $500 million in equity and debt to finance the sunshot.
According to the World Bank, powering 380 million people in sub-Saharan Africa by 2030 will require the construction of more than 160,000 mini-grids at a total cost of $91 billion.
The bank also said without massive industry scale-up, attaining SDG7 will remain a pipe dream.
‘RESILIENT GROWTH IN AFRICA’
Manoj Sinha, Husk’s co-founder and chief executive officer (CEO), said “meeting the targets of the Africa sunshot will require operational excellence from Husk, and we are ready to mobilize immediately”.
“It will also need the active support of governments to get the right policies in place that integrate mini-grids as a central component of national electrification and energy transition plans,” he said.
“Finally, all investors, including development finance institutions, infrastructure funds, and commercial debt providers, must provide the appropriate quantum, tenure and cost of capital to meet these accelerated timelines.”
Olu Aruike, Husk’s Nigeria country director, said the company has implemented parts of its climate resilient growth in Nigeria and is ready to scale up across the continent.
“Now is the time to support a 10-fold increase in the mini-grid industry and supercharge low carbon and climate resilient growth in rural Africa,” he said.
“We’re already doing it at scale today in Nigeria, the world’s largest off-grid market, and it’s time to roll out that scale across the continent.”
