47529 - Husk Minigrids

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Summary of Investment Information

Project Number

47529

Company Name

HUSK POWER ENERGY SYSTEMS NIGERIA LIMITED

Date SPI Disclosed

May 24, 2024

Country

Nigeria

Region

Africa

Projected Board Date

Jun 28, 2024

Environmental Category

B - Limited

Status

Pending Disbursement

Last Updated Date

May 31, 2025

Department

CN3CE - Regional Industry - INF Africa/INF Central Africa

Industry

Infrastructure

Previous Events

Approved : Nov 14, 2024
Signed : May 13, 2025

Sector

Rural Electrification

Additional Project Attributes

Blended Finance

Project Description

Husk Power Energy Systems Nigeria Limited (“Husk Nigeria” or “the Company”) is a subsidiary of Husk Power Systems Inc. (“HPS” or “Husk”). Husk is one of the leading mini grids developers/operators, with a primary focus on rural communities. Husk initially started operations in India in 2008 and entered Nigeria in 2020. Globally, Husk has 270+ mini grid sites including 30 sites in Nigeria. Total installed capacity is 9MW. Husk’s mini grids are hybrid mini grids which combine solar photovoltaic panels, battery energy storage systems, and diesel generators, and normally are operated independently (i.e. the mini grids are not connected to the main electricity grid).

IFC is considering a debt investment of up to US$5 million to finance up part of the Company’s mini grid expansion plan in Nigeria (the “Project”), including up to US$2.5 million from IFC as implementing entity of the Canada-IFC Renewable Energy Program for Africa. The debt investment is part of an up to US$100m Nigeria DARES envelope under which IFC is looking to provide similarly structured debt investments to several mini grid developers/operators. The Project is expected to provide cleaner, cheaper, and more reliable electricity to rural households and business that currently have expensive, unreliable, unsustainable, or no access to electricity.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	2.50
Equity

Development Impact

The Project contributes to improving access to electricity in Nigeria, a market characterized by low access (60%) and low reliability by financing mini grid sites in underserved rural areas. It will also provide a more affordable alternative to diesel generators. The Project will also result in a reduction in GHG emissions, and support the decarbonization of Nigeria’s power sector, where 77% of its electricity is generated from fossil fuels, and the use of diesel generators is widespread due to unreliable supply. At the Market Level, the Project contributes to creating a hybrid solar PV mini grid market in Nigeria by supporting an innovative business model that raises the efficiency of solar mini grids with demonstration potential. It forms part of the WB Nigeria DARES program to utilize private sector investments to scale mini grids through a PBG program. The Project also catalyzes private sector investments arising from Nigeria’s favorable regulatory framework for mini grids (100/100 score on ESMAP’s Regulatory Indicators for Sustainable Energy).

IFC’s additionality is both financial and non-financial, deriving from: (i) Financing structure: IFC is expected to provide financing to Husk through a debt facility in USD in an FX-constrained environment, part financing the developer's construction costs, thereby accelerating the mini grid deployment in Nigeria. This type of funding (in USD) is not readily available given the risks typically associated with the nascent mini grid sector in Nigeria; (ii) Knowledge, innovation, and capacity building: IFC expects to leverage its sector knowledge and experience in the power sector of the target market to help the Sponsor realize investments in the sizable mini grids market and expand its reach; and (iii) Standard setting: IFC’s non-financial additionality encompasses support to comply with rigorous E&S standards.

E&S Category Rationale / Risks and Mitigation

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability as the Environmental and Social (“E&S”) impacts associated with the project are limited, generally site-specific, and readily addressed through mitigation measures. Key E&S risks and issues associated with the Projects are: (a) corporate E&S management systems and staffing to manage the operations in line with IFC PSs requirements; (b) adequate E&S screening and assessment for proposed mini-grids; (c) assurance of fair, safe and healthy working conditions in compliance with country’ legal labor laws and PS2 requirements; (d) occupational, health and safety management during construction; (e) emissions, wastewater, and solid waste management in line with World Bank Group (WBG) Environment, Health and Safety (EHS) Guidelines; (f) community risks due to operations, transport and security; (g) access to land in line with PS5 requirements and (h) stakeholder engagement plan and community grievance mechanism.

Contacts

For Inquiries About the Project, Contact

Husk Power Energy Systems Nigeria Limited
Manoj Sinha
Group Chief Executive Officer
+234 800 313 4522
info@huskpowersystems.com
25, Ndola Crescent Wuse, Abuja 904101, Federal Capital Territory (FCT), Nigeria
https://huskpowersystems.com

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Telephone: 202-473-3800
Fax: 202-974-4384

Local Access of Project Documentation

Contact Person: Manoj Sinha

info@huskpowersystems.com

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. Its purpose is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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