What’s at stake

Improving energy access in rural and semi-urban areas

According to the International Energy Agency, more than 700 million people worldwide lack access to electricity, with the majority residing in Africa where the electrification rate of the 33 least developed countries is only 36%. Solar minigrids can play a significant role in improving energy inclusion. To meet the growing energy demand, it is estimated that a substantial number of new minigrids need to be built before the end of the decade. This significant investment push is supported by energy access programs funded by the World Bank and other donors, including in Husk’s core markets.

While in Nigeria, almost half the population still has no access to electricity, the instability of India’s national grid means that more than half the country experiences daily blackouts. In this context, Husk Power Systems has already rolled out more than 200 minigrids in northeast India and central Nigeria. In the next 12 months, Husk intends to double its footprint, combining solar energy, batteries and alternative back-up sources. In the future, the company plans to invest in other African countries to improve energy access.

Minigrids: a key solution for the Sustainable Development Goals

Husk’s minigrids provide access to clean, affordable and reliable energy for households and small businesses in rural areas (Nigeria) and semi-urban areas (India). They contribute to achieving Sustainable Development Goals 7 (clean and affordable energy), 8 (decent growth and economic growth) and 13 (climate action).

This transaction is also in line with STOA’s commitment to channel at least 50% of its investments towards African markets. It is also STOA’s first investment in the minigrid sector.