IFC invests $5 million in Husk Nigeria to build 108 solar mini grids
Husk Power Energy Systems
Nigeria Limited (Husk Nigeria) to support the deployment of up to 108
solar hybrid mini grids
across Northern Nigeria, aiming to deliver renewable electricity to approximately 115,000 people and businesses.
The funding is the first investment under IFC's Distributed Access through Renewable Energy Scale-up (DARES) Platform, a $200 million debt facility approved in November 2024 to accelerate private sector-driven
decentralized renewable energy
(DRE) solutions in West and Central Africa.
The total project cost is estimated at $25 million. IFC's $5 million financing package includes a $2.5 million senior loan from its own account and a $2.5 million concessional subordinated loan from the Canada-IFC Renewable Energy Program for Africa. The revolving loan structure allows Husk to repay and redraw funds during the project's execution.
The
DARES Platform
complements the $750 million World Bank-financed Nigeria DARES Project launched in December 2023 and implemented by Nigeria's Rural Electrification Agency. The overall effort is aimed at providing more than 17.5 million Nigerians with new or improved electricity access through decentralized systems.
'The DARES Platform is an innovative approach to tackling one of Africa's most pressing challenges—energy access. By partnering with Husk, a leading renewable energy developer globally, through the first project under the DARES Platform, we are not only addressing the immediate electricity needs of underserved communities in Nigeria but also laying the foundation for a scalable model that can be replicated across the continent. This initiative underscores IFC's commitment to advancing sustainable energy solutions through strong partnerships between the private sector, governments, and development institutions," said Ethiopis Tafara, Regional Vice President of Africa, IFC.
"This innovative debt facility is exactly what the minigrid industry needs to scale - blended, long-term and affordable capital," said Husk Co-Founder and CEO Manoj Sinha.
'Access to working capital is critical for sustained and rapid growth. Adding 108 new communities to our minigrid portfolio with IFC support is an important step toward our goal of deploying at least 250MW of decentralized
renewable energy projects in Nigeria
,' said Olu Aruike, Manager, Husk Nigeria.
Husk's solar hybrid mini grids provide an alternative to diesel generators, offering users cost savings of at least 25% while reducing greenhouse gas emissions. The 108 sites are expected to create 28,750 new electricity connections.
Despite being Africa's largest economy, Nigeria has over 85 million people without access to electricity, the highest electricity access deficit in the world. Even grid-connected users face unreliable power supply, driving widespread diesel generator usage.
The DARES Platform also supports the World Bank Group and African Development Bank's Mission 300, launched in April 2024, which targets electricity access for 300 million people in Africa by 2030. It also promotes gender inclusion, with a focus on female-headed households, women-led MSMEs, and employment for women in the energy sector.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
5 hours ago
- Time of India
Pratapgarh's sandalwood farmer to be special I-Day guest at Red Fort
1 2 Prayagraj: Utkrisht Pandey, a pioneering farmer from Pratapgarh, and his wife Pandey, have been invited as special guests to the Independence Day ceremony at Red Fort on Aug 15. The honour comes in recognition of Pandey's groundbreaking work in introducing sandalwood farming in Uttar Pradesh. On his seven-acre farm, 'Rishigram', in Bhadauna village, he has successfully cultivated over 3,000 sandalwood plants and four hybrid turmeric varieties, showcasing exemplary organic and natural farming practices. Talking to TOI, Pandey said, "It is an immense honour for my family to be invited as special guests to the Independence Day ceremony at both Red Fort in New Delhi and Lucknow. We're thrilled and delighted by this recognition. To attend the ceremony at Red Fort, I've planned to travel to New Delhi, and I'm eagerly looking forward to this prestigious event." The invitation has been extended by the state medical plants board and Regional-cum-facilitation centres under the Ministry of Ayush. In May, a delegation from Bhutan visited Pandey's farmhouse to explore organic farming opportunities and learn from India's experiences, focusing on rural economy development. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 90s Icon: A Look at Her Today The Latest Article Undo This visit also highlighted the growing interest in sustainable agricultural practices. Notably, Pandey has also been invited by the UP Governor to the Independence Day celebrations in Lucknow, recognizing his pioneering work in sandalwood farming and organic practices. Earlier this year, a team of the Ministry of Ayush and National Medicinal Plants Board visited his fields to assess sandalwood farming and appreciated Pandey's efforts. Pandey, a former Sashastra Seema Bal (SSB) officer, was the first in eastern UP to launch the cultivation of sandalwood plants and hybrid varieties of turmeric on his seven-acre land in Bhadauna village. He acquired the necessary skills for sandalwood farming from a Bengaluru-based institute. He's not only implementing these techniques on his own farm but also sharing his knowledge with other farmers in eastern Uttar Pradesh. Pandey's initiative to train farmers in growing sandalwood and turmeric aims to promote sustainable agriculture practices in the region. "After taking premature retirement from central armed police forces in 2016 from the post of assistant commandant, I decided to take up technical and skilled farming on my agricultural land. Initially, I planted 400 sandalwood saplings about six years back, and now my farm has over 3,000 plants and a wide range of turmeric varieties," he said. He believes that sandalwood production will increase employment opportunities for villagers, especially women, and lead to reverse migration and sustainable development. In 2019, Pandey took up active farming through organic methods to improve soil quality and the lives of thousands of other farmers. He also studied sustainable farming and further struck upon agroforestry as the ideal model for him. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Time of India
7 hours ago
- Time of India
Govt allocates land for EFLU campus in city
Lucknow: The Yogi govt has transferred 2.3239 hectares of land in Chakauli village in Lucknow for the construction of a permanent campus for the English and Foreign Languages University, Hyderabad. At present, the Central University is temporarily operating from the RTTC Complex on Kanpur Road. The land in Pargana Bijnor, Tehsil Sarojini Nagar, has been transferred on a lease at the rate of Rs 1 per year. At the permanent campus, the varsity will run regular programmes like as BA (Honours) English, MA English, MA Linguistics, MA English Literature, PGDTE, and PhD along with parttime courses in French, German, Russian and Spanish languages. Chief guest higher education minister Yogendra Upadhyay said the Yogi govt was committed to providing the youth of the state with linguistic education of global standards. He expressed confidence that the construction of the permanent campus will lead to unprecedented growth in the quality of education and facilities. The university's vice-chancellor Prof N Nagaraju expressed gratitude towards the UP govt saying that this land transfer is a historic step for the long-term development of the institution and that the Lucknow Campus will be developed into an excellent centre for linguistic education and research. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
&w=3840&q=100)
Business Standard
7 hours ago
- Business Standard
M&M expands capacity at South African plant as US tariffs hit auto sector
Mahindra & Mahindra Ltd. is boosting capacity at its South African plant by two-thirds as India's largest automaker by value seeks to capitalize on demand for budget vehicles in the continent's biggest economy. The company, which makes the Mahindra Pik-Up brand at its assembly plant near the port city of Durban, will boost capacity to 1,500 vehicles a month from 900, said Rajesh Gupta, chief executive officer of the local unit. It's also considering assembling other models, including the Bolero and the Veero pick-up, he said. Sluggish growth in the continent's most-industrialized nation has led South Africans to demand more economical cars. Sales of Mahindra, Suzuki Motor Corp. and China's Chery Automobile Co. vehicles have jumped, while those of Mercedes-Benz Group AG and BMW AG have plunged or stagnated. The average selling price of cars has dropped 2.3 per cent in the past two years to 490,478 rand ($27,600), according to Toyota Motor Corp., South Africa's most popular auto brand. Annual inflation averaged about 4.5 per cent over the same period. That's compounding difficulties that Mercedes is facing in South Africa, where it produces vehicles that are shipped to the US. US President Donald Trump's 30 per cent tariff on the nation's exports to America will hit Mercedes hard. The German company, which last year produced 70,000 cars at its plant in East London — about 650 kilometers (404 miles) south of Durban — cut a shift and announced it would fire 700 workers last year, even before Trump's levies decimated US demand. While global supply chains take years to create, 'it takes one stroke of a pen to kill everything,' Gupta said in an interview. Still, tariffs may come as a 'blessing in disguise' for trade between South Africa and India, he said. Trump levied a 25 per cent tariff on exports from India to the US, which can increase to 50 per cent. Mahindra's vehicles are among the top four pick-ups in South Africa, with compound annual growth of 22 per cent since 2019, while the broader market shrank 3.1 per cent., Gupta said. 'This will become a case study, I'm pretty confident, how one can start nimble, stay authentic and responsible, create sustainability and keep growing step-by-step,' Gupta said. 'No matter what happens in the world environment.' The pick-ups assembled at Mahindra's Durban plant, which opened in 2018 and is the company's biggest outside India, have become popular with local farmers. They're also used by the police in neighboring Mozambique. Mahindra's expansion is a rare bit of good news for President Cyril Ramaphosa as his government struggles to reduce the fallout from Trump's tariffs. Agricultural exports are also exposed to the levies. The rise in the mid-market segment has even lured Tata Motors Ltd. India's largest automaker by sales has tied up with Motus Holdings Ltd. to distribute its vehicles in the African nation, according to the South African car retailer. More than a third of the vehicles sold in South Africa are exported from India or China, according to Toyota. The government wants to change that. 'With regards to Chinese and Indian auto, it is a discussion,' Trade, Industry and Competition Minister Parks Tau said on Tuesday. The government is 'taking a more of a proactive approach of getting some of those products manufactured in the country.' Mahindra — the owner of Automobili Pininfarina, the handcrafter of €2.2 million ($2.4 million) electric hypercars — also plans to bring EVs to South Africa, according to Gupta. 'We are extremely sure of bringing them sooner than later,' he said, without providing a timeline. The company will offer both the BE 6 & XEV 9e EV lines to South Africa, he said. The Mumbai-based company is considering upgrading its plant to assemble vehicles using completely-knocked down parts from a semi-knocked assembly plant, Gupta said. The expansion has created about 100 direct jobs.
