DEG, Germany’s development finance institution, has awarded $750,000 in funding to U.S.-based Husk Power Systems for the construction of eight community solar micro-grids in Nigeria.
The loan is the first debt raised by Husk Power Systems for its Nigerian portfolio and falls under the DEG’s Up-Scaling Program.
Through the Up-Scaling Program, DEG finances innovative investments of small and medium-sized enterprises in developing countries in partnership with Germany’s Federal Ministry for Economic Cooperation and Development. According to a press release from Husk Power Systems, the company currently operates 12 micro-grids in Nigeria and is aiming to expand this number to 500 by 2026.
The off-grid market in Nigeria has rapidly expanded in recent years, able to deliver electricity to rural and dispersed populations, help meet carbon reduction goals and avoid the construction of capital-intensive transmission lines.