Husk Power Systems bags $43m to drive mini-grid deployment
Power Engineering International
Posted on: 26 October 2023
Husk Power Systems has closed $43 million in Series D funding and secured an additional $60 million in debt from several financial institutions.
US-based Husk Power Systems, a company that provides low cost hybrid power plant and distribution networks to rural communities in India and Africa, has announced that it has closed $43 million in Series D funding.
Reported to be the largest equity raise in the mini-grid industry, this funding will help the company further electrify communities in rural Sub-Saharan Africa and South Asia with an AI-enabled platform of renewable energy services.
The equity funding includes new investors STOA Infra & Energy, the US International Development Finance Corporation (DFC) and Proparco, as well as existing investors Shell Ventures, Swedfund and FMO.
In addition, Husk has leveraged the Series D equity to secure an additional $60 million in debt from several finance institutions, including the European Investment Bank (EIB), and the International Finance Corporation (IFC).
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Over the next five years, the new funding will be used to grow Husk’s fleet 8 times by adding more than 1,400 new mini-grids with a projected 300,000 new connections (one-third of them MSMEs), while avoiding 350,000 tonnes of CO2.
Manoj Sinha, Husk co-founder and CEO said: “We have successfully created and scaled a rural energy platform that is life-changing for our communities from day one. We’re excited to put this new equity and debt to work to supercharge Husk’s growth and unlock the full economic and social potential for a generation of rural Africans and Asians, especially women and youth, that would otherwise be left behind.”
Referring to the financing, Jean-Pierre Barral, deputy CEO of STOA Infra & Energy commented, "STOA is excited to lead this equity investment in Husk and support the growth of the mini-grid industry, which is key to achieving universal energy access and a low carbon energy transition.”
Mateo Goldman, acting head, office of equity and investment funds, DFC, stated: “This is an important transaction that will strengthen energy security across Africa and Asia, which will bolster investment, increase economic opportunity, and improve livelihoods. This project will help meet the growing demand for clean, affordable, and reliable energy vital to creating stability and prosperity.”
Brad Mattson, Husk board chairman added," The mini-grid industry needs at least a 10X increase in its rate of deployment to achieve the World Bank’s target of 200,000 mini-grids by 2030. Husk is now positioned to lead that growth and help to create an industrial revolution in rural Africa and Asia.”
Husk has evolved from being a pure-play mini-grid operator to becoming an integrated platform that unlocks the “Power of Rural” in Africa and Asia. Besides electricity sales, this includes sales and financing of energy efficient appliances, turnkey commercial and industrial (C&I) rooftop solar and a range of low-carbon and climate-resilient energy services, including e-mobility, agro-processing and cold storage. This innovative ecosystem approach is progressively becoming more intelligent and automated, powered by AI and IoT.
