Germany’s DFI Funds Solar Micro-Grids in Nigeria

Adedayo Osho, Abuja Bureau Chief

Germany’s development finance institution, DEG, has awarded $750,000 in funding to U.S. based Husk Power Systems for the construction of eight community solar micro-grids in Nigeria in 2023.

The loan is the first debt raised by Husk Power Systems for its Nigerian portfolio and falls under the DEG’s Up-Scaling Programme. 

Husk is a leading rural energy services company in weak-grid and off-grid communities in Africa and Asia.

Through the Up-Scaling Programme, DEG finances innovative investments of small and medium-sized enterprises in developing countries in partnership with Germany’s Federal Ministry for Economic Cooperation and Development. 

A press release obtained by Goodness Oil and Gas News from the Abuja office of Husk Power System states that the company currently operates 12 micro-grids in Nigeria and targets its expansion to 500 by 2026.

The off-grid market in Nigeria has rapidly expanded in recent years, able to deliver electricity to rural and dispersed populations, help meet carbon reduction goals and avoid the construction of capital-intensive transmission lines.