Nigeria is set to receive a US $20M funding aimed to boost the step towards addressing the issue of energy poverty through renewable energy solutions.
The US $20M loan is part of a Series D fund-raising operation initiated by Husk Power, an American company focusing on off-grid solar systems. It also aligns with the European Union’s (EU) Global Gateway strategy, which aims to establish sustainable and reliable links with partner countries. In Nigeria, the EU has committed to investing about US $975M in various sectors including education, energy, and transport by 2022.
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Climate goals
Approved by EIB, the funds will be used to support electrification efforts in Nigeria through community mini-grids powered by solar photovoltaic energy. The project will enable thousands of homes and businesses to access more reliable solar energy, reducing dependency on expensive diesel generators.
At least 150 communities are expected to benefit from the electrification. Husk Power not only focuses on electrification but also plans to expand its services to include rooftop solar panels for commercial and industrial customers, appliance sales, and value-added services such as agri-food and e-mobility. The company aims to electrify 500 rural Nigerian communities within the next five years, building on its existing 20 solar-powered mini-grids in the country.
Nigeria remains a growing population with a range of socio-economic issues that need sustainable energy resources to meet climate goals. Due to this, the country has increasing demand for energy, putting pressure on existing power infrastructure, but also opening the path for further economic development.
