HUSK POWER SYSTEMS, INC.Status: Approved investment
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Who is our customer
Founded in 2008, Husk Power Systems Inc. is an established mini grid company with operations in India (Uttar Pradesh, and Bihar) and Tanzania. Husk designs, builds and operates 100% renewable energy powered, low capex mini grids in off-grid and weak grid rural areas, providing 24/7 grid-compatible AC power to businesses, small factories and households on a pre-paid smart metering platform. Husk is able to offer an affordable 24/7 AC power solution by combining a biomass gasification system with a solar PV plant and battery in its hybrid mini grids.
What is our funding objective?
Husk is seeking to scale up and expand the number of hybrid mini grids drastically in the next few years, both in India as well as in Tanzania. The Company will complete its USD25m fund raising with FMO’s investment of USD 5m. The funding raised will be predominantly used to finance the capital expenditure for the mini grid roll out plan.
Why do we fund this investment?
FMO considers the distributed / off-grid energy sector as a very promising one, given its high development impact. Within the off-grid energy industry, the mini grid sector is still less developed and commercial funding is scarce. Husk being one of the more advanced, experienced and leading players in the mini grid space has great potential in terms of providing affordable new and/or improved access to energy for both productive, commercial and residential use in rural areas in developing markets. FMO is investing from the Infrastructure Development Fund, whose investment mandate fits very well with its focus on clean and affordable energy.
What is the Environmental and Social categorization rationale?
From an Environmental and Social risk perspective Husk is classified as a Category B investment; as a rural electrification company, Husk’s operations are expected to have limited potential adverse social or environmental impacts, which would likely be site-specific and can be readily addressed through active community engagement, applying good international industry practices, providing good labour conditions and following proper safety procedures.
|Total FMO financing
|USD 2.00 MLN
|EUR 0.14 MLN
- Website customer/investment
- Publication date
- Effective date
- Total FMO financing
- USD 5.08 MLN
- Building Prospects
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)