Husk Power Systems, Inc.
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
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 Nigeria. 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 solar PV plant and battery in its hybrid mini grids with diesel-gensets as back-up.
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 Nigeria. The Company will complete its USD43m equity fund raising with FMO’s investment of USD 2m. 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 Access to Energy 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. Though, land acquisition is part of securing mini-grid sites, justifying a higher risk category B+ and triggering IFC Performance Standards 1-4. The company executed an E&S action plan following FMO's initial investment in 2018 and will continue to improve practices accordingly.
More investments
| Date | Total FMO financing |
|---|---|
| 7/15/2022 | EUR 0.14 MLN |
| 12/20/2018 | USD 5.08 MLN |
- Website customer/investment
- https://huskpowersystems.com/
- Region
- Asia
- Country
- India
- Sector
- Energy
- Publication date
- 11/7/2023
- Effective date
- 10/20/2023
- Total FMO financing
- USD 2.00 MLN
- Funding
- AEF-I
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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) - B+