Solar hybrid microgrids operator Husk Power Systems has invited expressions of interest (EOI) from governments in Least Developed Countries (LDC) in Sub-Saharan Africa (SSA) to partner with the company to rapidly scale community solar mini grids in off-grid, weak-grid and under-the-grid communities.
Husk's public private partnership (PPP) offer is to finance the building of 200 mini grids in 1 or more LDCs in SSA to be owned and operated by the company through the system's lifetime. It aims to select 200 communities based on its business model and to have the ability to charge cost-reflective tariffs that are affordable for customers.
Interested governments will need to support Husk with a 20- to 25-year concession and if required they can provide viability gap support during the initial phase of mini grid operations.
The EOI will be welcomed from both national and sub-national governments and emailed to marketing@huskpowersystems.com. Further details are available on Husk's website.
The mini grids company sees opportunity with lack of electricity in LDCs, in 33 of which electrification rate is only 36% severely impacting the economic and social lives of millions of their denizens, it says. To achieve global Sustainable Development Goal 7 (SDG7) that aims to ensure affordable, reliable, sustainable and modern energy for all, these LDCs need to have the number of newly connected customers in rural areas increasing from 13.7 million to 41.0 million annually.
"We have the scale and a proven business model, and it's now time for SDG7-focused public-private partnerships to move from pilot phase to full-fledged market interventions that can achieve radical scale," said Husk Co-Founder and CEO Manoj Sinha.
Husk currently has over 200 mini grids operating in India, Nigeria and Tanzania aims to double it to 400 within next 12 months. As part of its commitment to the Energy Compact with the United Nations, Husk says it will build a minimum of 5,000 mini grids by 2030, install 500 MW of rural commercial and industrial (C&I) solar. In January 2023, it raised $750,000 from Germany's DEG to build community solar microgrids in Nigeria (see Financing For Community Solar Microgrids in Nigeria).
According to a World Bank report from September 2022, solar mini grids can power 490 million people by 2030 at $0.20/kWh, but it needs $127 billion investment (see World Bank Finds Huge Potential For Solar Mini Grids).