In Nigeria, the Rural Electrification Agency (REA) continues to implement its program to subsidize suppliers of green mini-grids. These power generation and distribution systems are a major asset for rural electrification in Nigeria and elsewhere in sub-Saharan Africa. The most recent recipient of the REA grant mechanism is Husk Power Systems. The Colorado, USA-based Company is signing up for Performance-Based Grants (PBGs).
This mechanism increases access to electricity for unsaved and underserved communities using hybrid solar technology. PBGs are awarded under the Nigeria Electrification Project (NEP), co-financed by the African Development Bank (AfDB) and the World Bank. Husk Power will install its mini-grids in Doma Local Government Area (Rukubi, Idadu and Igbabo) and Lafia Local Government Area (Kiguna, Akura, Gidan Buba and Sabon Gida).
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Husk estimates that these mini-grids will provide electricity to 5,000 households, as well as rural small and medium-sized enterprises (SMEs). With the PBG, for each connection, the mini-grid provider will receive a $350 grant, or $10,000 for each green mini-grid installed in Nasarawa State. The completion of this project will expand Husk’s portfolio.
The company led by Manoj Sinha operates 130 green mini-grids in India and Tanzania. In the East African country, the U.S.-based company has deployed its facilities at eight sites and provides electricity to 1,349 people, while employing 23 others. Nearly a year ago, Husk secured $5 million from Maatschappij voor Ontwikkelingslanden (FMO), the Dutch development finance company, to expand its services in Africa and Asia.
Jean Marie Takouleu