Husk Power Systems obtains $6 million in debt-finance from EDFI ElectriFi for solar microgrids in India
Husk Power Systems has announced that it has secured $6 million in debt financing from EU-funded EDFI ElectriFI.
The company plans to use the capital to build solar hybrid microgrids in 80 additional communities in rural India, a company statement said.
The new microgrids are in addition to the more than 120 microgrids that Husk already owns and operates in India.
"Husk Power Systems, operator of the largest fleet of solar-hybrid microgrids across rural Asia and Africa, will electrify 80 additional communities in India with $6 million in new debt financing, announced today, from the EU-funded Electrification Financing Initiative (EDFI ElectriFI)," it stated.
The 80 solar microgrids will benefit an estimated 60,000 people and connect nearly 10,000 new customers.
It will allow Husk to double its customer base of micro, small and medium-sized enterprises (MSMEs), which drive rural economic activity but still rely heavily on polluting and expensive diesel generation.
The new microgrids will displace a significant amount of diesel generators, avoiding the equivalent of 11,640 tons of CO2, it stated.
"The EDFI ElectriFI debt will enable Husk to become EBITDA positive before the end of 2022 and demonstrates our increased ability to absorb larger amounts of long-term, low-cost debt, which is necessary to scale microgrids profitably," Manoj Sinha, co-founder, and CEO, Husk Power said in the statement.