Latest news with #DARESPlatform
Entrepreneur
15-05-2025
- Business
- Entrepreneur
IFC, with Canada's Support, Backs Husk Nigeria's Mini-Grid Expansion with USD 5 Mn Investment
The financing package, including USD 2.5 million senior loan and USD 2.5 million concessional subordinated loan from the Canada-IFC Renewable Energy Program for Africa, will fund up to 108 solar hybrid mini-grid projects. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. The International Finance Corporation (IFC), a member of the World Bank Group, has announced USD 5 million investment in Husk Power Energy Systems Nigeria Limited (Husk Nigeria), a subsidiary of Husk Power Systems Inc. The investment, made with support from the Government of Canada, aims to expand access to reliable and renewable energy in Northern Nigeria—one of the regions most affected by energy poverty. This marks the inaugural investment under the IFC's Distributed Access through Renewable Energy Scale-up (DARES) Platform, a USD 200 million debt facility launched in November 2024 to drive private sector-led energy access across West and Central Africa. "This innovative debt facility is exactly what the mini-grid industry needs to scale—blended, long-term, and affordable capital," said Manoj Sinha, Co-founder and CEO of Husk. "Access to working capital is critical for sustained and rapid growth." The financing package, including USD 2.5 million senior loan and USD 2.5 million concessional subordinated loan from the Canada-IFC Renewable Energy Program for Africa, will fund up to 108 solar hybrid mini-grid projects. The initiative is expected to bring clean, affordable energy to approximately 115,000 people and businesses, creating 28,750 new electricity connections. The total project cost is estimated at USD 25 million. "Adding 108 new communities to our mini-grid portfolio with IFC support is an important step toward our goal of deploying at least 250MW of decentralised renewable energy projects in Nigeria," said Olu Aruike, Manager, Husk Nigeria. The DARES Platform is closely aligned with the World Bank's USD 750 million Nigeria DARES Project, implemented by the Rural Electrification Agency, and is part of a broader strategy to improve electricity access for 17.5 million Nigerians. It also supports the World Bank Group and African Development Bank's Mission 300, which seeks to provide electricity to 300 million Africans by 2030. "The DARES Platform is an innovative approach to tackling one of Africa's most pressing challenges—energy access," said Ethiopis Tafara, IFC's Regional Vice President for Africa. "By partnering with Husk, we are not only addressing immediate electricity needs but also building a scalable model for sustainable development across the continent." Husk's AI-powered hybrid mini-grids reduce reliance on diesel generators, offering users at least 25% in energy cost savings while cutting greenhouse gas emissions—an essential step toward a greener, more inclusive future.
Time of India
15-05-2025
- Business
- Time of India
IFC invests $5 million in Husk Nigeria to build 108 solar mini grids
New Delhi: The International Finance Corporation (IFC), a member of the World Bank Group, has announced a $5 million investment in 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.
