Husk Power achieves mini-grid profitability

Husk Power Systems, a renewable energy services company with 150 community solar mini-grids in operation in South Asia and Sub-Saharan Africa, has stated that, as of the fourth quarter of 2022, it has reach profitability across its two primary market, officially becoming the industry’s first profitable mini-grid company. This achievement showcases the lucrative potential for mini-grid adoption in emerging markets such as Africa.

Husk's profitability has signaled to the market that the rural mini-grid business model in South Asia and Sub-Saharan Africa, is a bankable asset class and a significant contributor to net-zero growth for hundreds of millions of unserved and under-served people in Africa and Asia. The achieved success can be traced back to a combination of the company's dedication to technological and business innovation, and its novel platform approach that encompasses the entire rural ecosystem.

In 2022, Husk announced its plan to construct up to 500 mini-grids in Nigeria by 2026 with the aim of providing access to electricity to over 500 homes and businesses, reduce the number of diesel generators in use by 400, generate 40 new direct employment, and cut carbon emissions by at least 600 tons annually. In addition, the company signed the UN Energy Compact in 2022 and has pledged to construct at least 5,000 mini-grids by 2030, benefiting 10 million people and preventing 7 megatons of diesel generator carbon emissions. Husk Power operates twelve off-grid mini-grids in Nigeria, with plans to triple that number by year's end. These initiatives has helped drive the profitability and success of Husk’s Power in Africa.