Dear valued stakeholder,
A newly commissioned Husk minigrid in India
Digitalization is key to scaling the minigrid industry, and Husk Power has invested heavily in automation to enable the growth of its fleet from hundreds to thousands of minigrids. So we were proud to be named a winner of the inaugural “AI for the Planet” competition for using artificial intelligence “to fight climate change and take action.” We also added a new source of revenue in Q2 by securing one of the industry’s first deals through the recently launched D-REC platform. In addition, Husk is actively exploring new markets, especially in Sub-Saharan Africa, and participated in a high-level roundtable in the Democratic Republic of Congo (DRC). Meanwhile, Husk’s leadership was the subject of case studies by a number of partners, including the Nigerian government, Samsung, Tufts University and Energy Savings Trust.
Please read on for more details.
Manoj Sinha, Co-Founder & CEO
MARKET FOCUS
Husk participated in a high-level roundtable in Democratic Republic of Congo (DRC)
In March 2023, Husk invited governments in Least-Developed Countries (LDCs) in Sub-Saharan Africa to partner in scaling minigrids. Since then and throughout Q2 2023, the company has initiated discussions with officials from multiple countries interested in the potential for public-private partnership. In June, Husk was invited to participate and speak at a high-level roundtable in the Democratic Republic of Congo (DRC), where more than 60 million people are still without electricity access. Hosted by rural electrification agency ANSER, the event was focused on “boosting the electricity market in the DRC for the development of rural and peri-urban areas”. Senior representatives from Husk met with key government and private sector stakeholders, and contributed expert perspectives on two panels, one focused on policy and regulation and the other on the role of carbon markets in the minigrid industry.
FINANCIAL OUTLOOK
Husk has been a pioneer in the carbon market for several years by deploying solar minigrids in India that avoid diesel generation emissions, then monetizing those offsets through a UNFCCC-verified methodology. In Q2, Husk also became one of the first minigrid developers to take advantage of a new platform for D-RECs (distributed renewable energy certificates). D-RECs are a type of renewable energy instrument that are an extension of the International REC Standard (I-REC) ecosystem. A D-REC packages electricity generated by distributed renewable energy assets so that it can be certified as an I-REC, which can then be sold to corporations around the world. Partnering with Powertrust, Husk was able to monetize its first D-RECs for a cluster of minigrids in Nigeria. Because these projects are providing low carbon energy access to rural communities for the first time as well as other benefits (health, gender, food security), the D-RECs are able to charge a premium because corporations can not only meet their own climate goals, but can also help the Global South to leapfrog energy technologies and move straight to clean energy. The incremental revenue generated for Husk by the D-RECs will allow the company to further lower its costs, and those cost savings can ultimately be passed on to our customers.
INDUSTRY LEADERSHIP
Husk's CEO talks AI & scaling energy access at the United Nations
The AI for the Planet prize awarded Husk the Microsoft Entrepreneurship for Positive Impact Technology Prize for its use of artificial intelligence. Husk recognized early on that only through digitalization could it achieve its ambitions to build 5,000 minigrids by 2030. Besides smart meters and IoT, AI is playing an increasingly important role in efficiently and remotely monitoring and managing Husk’s assets, as well as customizing customer service. Husk was also the subject of four case studies in Q2. The Rural Electrification Agency of Nigeria called Husk “a great example [of the government’s commitment] to mobilizing private capital to ensure that every person in the country has access to energy and the means to live a productive life.” Fletcher School of Tufts University, one of the world’s top graduate programs for global affairs, published an in-depth case study of Husk that evaluated our overall business, concluding that Husk’s “success in scaling is proof that sustainable, inclusive businesses can be both socially conscious and profitable.” Samsung also featured Husk in a case study, saying that “Husk's strength in supply chain management and marketing makes it the ideal partner to open up rural markets.” Lastly, Husk’s innovative approach to appliance financing was featured in a report by Energy Saving Trust.
IN THE NEWS
Below are a few highlights of recent Husk media coverage and awards:
The Financial Times highlighted Husk Power in an article about Nigeria’s start-up scene
AI for the Planet interviewed CEO Manoj Sinha about the company’s digital innovation and use of machine learning
Climate Confident podcast sat down with Husk’s CMO for a wide-ranging conversation
Read this insightful Q&A with Husk CEO Manoj Sinha from Meaningful Business
