Hydrobox is excited to announce a strategic USD 9 million debt investment from FMO, the Dutch Entrepreneurial Development Bank, and ElectriFI, an EU impact investment facility focused on clean energy access in developing countries, managed by EDFI Management Company (EDFI MC).
Scope & impact
The financing will support eight small hydro projects across four mini-grids in Kenya, providing over 10,000 people and local businesses with reliable, affordable electricity.
Business model
Hydrobox builds, owns and operates mini-grids in underserved regions. These mini-grids serve a combination of anchor clients (e.g. factories and farms), small businesses (e.g. schools, hospitals, shops, restaurants), and households, all through an independent grid that offers accessible, reliable power.
This combination ensures a stable revenue base from large customers while bringing down electricity prices for small businesses and households, providing affordable access to energy.
Innovation & Climate Resilience
Hydrobox’s containerized hydro power plants lower construction costs, reduce production time, and facilitate deployment in hard-to-reach off-grid areas. Equipped with state-of-the-art IoT technology, each unit is remotely monitored and managed, maximizing efficiency and reducing downtime.
Hydrobox’s mini-grids integrate both hydro with supplementary solar PV power, creating a balanced energy mix that enhances climate resilience. During rainy seasons, hydroelectric generation is maximized, while solar compensates in drier periods. This adaptive approach ensures reliable power for communities year-round and safeguards them against seasonal weather fluctuations.
Impact
This investment is expected to provide electricity to approximately 2,582 households, benefiting over 10,000 individuals. These projects will deliver vital electricity to communities and businesses in need of reliable, affordable power. By harnessing small local rivers, Hydrobox provides a sustainable, locally sourced power solution that reduces dependency on fossil fuels, lowers carbon emissions, and supports job creation through close, on-the-ground service that ensures high-quality support.
Small run-of-river hydro systems have a minimal impact on the environment, preserving local ecosystems while providing clean reliable energy. The project partners work closely with local stakeholders, regulatory bodies, and communities to ensure responsible project implementation, fostering long-term partnerships and delivering socio-economic benefits that empower the communities that previously didn’t have access to reliable or any electricity at all.
“At FMO, we’re committed to fostering sustainable development through the private sector, and see Hydrobox’s focus on providing 100% renewable energy access to houses and businesses across rural Kenya as a clear step in achieving this mission. We are pleased to support an early-stage company like Hydrobox as it brings its innovative model to market and look forward to jointly maximizing impact to drive social and economic development in Sub-Saharan Africa,” said Michael Jongeneel, CEO of FMO Entrepreneurial Development Bank.
“We are thrilled to partner with Hydrobox, a venture co-founded by Belgian and Kenyan entrepreneurs, which combines local expertise and ownership with innovative and climate-resilient solutions. Hydrobox’s mix of hydro and solar power is a shining example of the kind of sustainable and adaptive energy model we’re committed to supporting in the communities that need it most,” said Rodrigo Madrazo, CEO of EDFI Management Company.
Thomas Poelmans, CEO and Co-Founder of Hydrobox added: "Our partnership with reference investors FMO and ElectriFI serves as a quality label and recognition for the hard work our team has put in over the last few years. With strong partners on board and a substantial pipeline of upcoming projects in Kenya and the DRC, we are well-positioned to make a meaningful impact on energy access across Africa, aiming to reach 1,000,000 end-users by 2030. We thank everyone who has believed in and supported our journey.”
About EDFI Electrifi
The Electrification Financing Initiative – ElectriFI, managed by EDFI Management Company, is an impact-first investment facility, funded by the European Union. ElectriFI is investing in early-stage private companies and projects that increase or improve access to and supply of sustainable energy in developing countries. EDFI Management Company (EDFI MC) is a multilaterally owned impact asset manager which delivers innovative development finance solutions that enable European DFIs, development banks and private sector investors to increase the scale and impact of their work. The company focuses on business models, technologies and geographies where other investors have not been able to operate at the desired scale given their resources and investment criteria. For more information, visit www.electrifi.eu and www.edfimc.eu.
