Dear valued stakeholder,
CEO Manoj Sinha and Husk Team Members in India
Husk Power is heading into 2023 with a full head of steam.
In Q3, we successfully raised $6 million in debt to build and operate solar microgrids in another 80 communities in India, which followed $4 million in debt for India earlier in the year. We expect to close project finance for Nigeria in the near future, as well as our Series D round of equity.
In Nigeria, the company doubled its fleet to 12 microgrids, and announced a pipeline of 100 sites ready for development. We also announced a new multi-year initiative, the Nigeria Sunshot, which set forth ambitious socio-economic development and climate impact goals. At the same time, Husk is actively exploring other markets in Sub-Saharan Africa, and was honored to speak at the DRC Invest conference in Kinshasa.
Husk remains focused on pushing for greater ambition for the microgrid industry, and has developed a first-of-its-kind industry roadmap to be published in Q4 that will be a valuable reference for developers, investors and governments. And we’ve been putting forth a diverse group of Husk representatives to speak at leading venues, offering up our perspective on gender, industry growth, rural C&I and the energy-agriculture nexus. I was honored to receive the 2022 Lifetime Achievement Award from the Africa Solar Industry Association (AFSIA).
See below for more details, and don’t hesitate to reach out to me with questions or comments.
Best,
Manoj Sinha, Co-Founder & CEO
MARKET FOCUS
Husk's Sunshot Initiative Launches in Nigeria
In Nigeria, Husk launched its second batch of 6 microgrids, bringing its fleet total to a dozen. The 12 sites will benefit 50,000 people and hundreds of MSMEs. This is the opening salvo of our newly launched “Nigeria Sunshot Initiative”. By 2026, the initiative aims to build 500 microgrids, establish 400,000 new connections that benefit 2 million people, while taking 25,000 diesel/gasoline generators offline. Additionally, the Sunshot will provide electricity to 8,000 women-led enterprises and 1,000 health clinics and schools. According to recent Nigerian government data, solar microgrids represent the least-cost technology for 8.9 million of the 19.8 million additional connections needed in the country to achieve universal electrification. Under the Sunshot Initiative, Husk will be able to provide about 5% of those connections. Husk was also chosen to discuss its Nigeria plans as part of the launch of the Energy Compact Action Network by UN Energy, during which it was recognized for its leadership by Nigeria’s Minister of State for Environment, Sharon Ikeazor.
In India, we surpassed 10,000 MSME customers, a significant milestone that reinforces the strength of our business model and our ability to deliver “modern energy” for industrial and commercial applications. Husk also introduced a marketing campaign in India specifically targeted at helping village-level women entrepreneurs grow their businesses.
FINANCIAL OUTLOOK
Husk successfully closed a $6 million debt financing with EU-funded EDFI ElectriFI, which will allow us to electrify 80 additional communities. Husk expects to close its Series D equity round by the beginning of 2023, and has received strong interest from a range of investors, including private equity and infrastructure funds, development finance institutions (DFIs), strategic multinationals, as well as climate investors and family offices. Husk has a target of raising $40 million in equity and another $60 million in debt to fuel our next 5 years of growth, during which time we anticipate 10x growth from our current ~150 microgrids to 1,500. In the meantime, Husk has built a pipeline of hundreds of shovel-ready projects and is working towards being EBITDA positive at the country level in both India and Nigeria.
INDUSTRY LEADERSHIP
Olayemi Ebire, Head of Minigrids in Nigeria, at a Lagos Conference
Husk has developed an industry roadmap, which it plans to publish in Q4. The roadmap has two goals: 1) to increase the level of ambition for all private sector microgrid developers, including Husk and 2) to provide developers, investors, government and other key stakeholders with a clear guide against which to benchmark industry performance and understand where to target R&D. Husk has engaged more than a dozen leading organizations working in the microgrid industry, and has incorporated their feedback into the final publication.
We also hosted a roundtable discussion on net-zero rural economic growth with participation from the European Commission, SunFunder and the Africa Minigrid Developers Association (AMDA) and joined an African Development Bank (AfDB) roundtable on “Developing enhanced agricultural value chains in Africa”.Husk representatives also spoke at numerous events, including Enlit Africa, Future of Energy, Power & Water Nigeria, Africa Energy Forum, Climate Council’s Disrupt 2022, DRC Invest and more. We’ll be speaking at the upcoming ECOWAS Sustainable Energy Forum and IOREC as well, so be sure to find us if you’re attending.
IN THE NEWS
Below are a few highlights of recent Husk media coverage:
Forbes profiled Husk Power: Solar Energy Is Key To Replacing Diesel And Advancing Sustainable Growth In Africa,
VOA Straight Talk: Interview with CEO Manoj Sinha
Channel News Asia (CNA) Insider program featured Husk in its series Climate Trailblazers: Toward Net Zero
Africa Solar Industry (AFSIA) 2022 Lifetime Achievement Award was presented to Husk CEO Manoj Sinha
BBC interview on Nigeria energy with Country Director Olu Aruike
Local TV aired Saugata Datta on a panel speaking about the role of distributed renewable energy in improving rural livelihoods in Bihar state [Hindi language only]
