United States-based Husk Power Systems has signed a grant agreement with Nigeria’s Rural Electrification Agency (REA) to install solar mini-grids in seven rural communities in the country’s Northcentral state of Nasarawa.
The grant is under the purview of a subsidy, implemented by the REA support suppliers of green mini-grids, whose power generation and distribution systems are a major asset for rural electrification in elsewhere in sub-Saharan Africa. Performance-Based Grants (PBGs) are awarded under the Nigeria Electrification Project (NEP), co-financed by the African Development Bank (AfDB) and the World Bank.
Husk Power will install its mini-grids in Doma Local Government Area (Rukubi, Idadu, and Igbabo) and Lafia Local Government Area (Kiguna, Akura, Gidan Buba, and Sabon Gida).
This mechanism increases access to electricity for unsaved and underserved communities using hybrid solar technology.
Husk estimates that these mini-grids will provide electricity to 5,000 households, as well as rural small and medium-sized enterprises (SMEs). With the PBG, for each connection, the mini-grid provider will receive a $350 grant or $10,000 for each green mini-grid installed in Nasarawa State. The completion of this project will expand Husk’s portfolio.
Husk Power operates 130 green mini-grids in India and Tanzania.
It has deployed its facilities at eight sites in Tanzania and provides electricity to 1,349 people while employing 23 others. Nearly a year ago, Husk secured $5 million from Maatschappij voor Ontwikkelingslanden (FMO), the Dutch development finance company, to expand its services in Africa and Asia.