Husk Power Systems receives $20 million investment from Shell, Swedfund, ENGIE Rassembleurs d’Energies to scale renewable mini-grid business in Africa and Asia
PATNA, India, 15 January 2018 – Husk Power Systems (huskpowersystems.com), a leading rural distributed utility company operating mini-grids in Asia and Africa, today announced a US $20 million equity investment* by Shell Technology Ventures LLC, Swedish development finance institution Swedfund International and ENGIE Rassembleurs d’Energies, ENGIE group’s impact investment fund. Husk is now positioned to accelerate its growth to develop what the International Energy Agency estimates as a $190 billion mini-grid market leading up to 2030.
Husk currently designs, builds, owns and operates one of the world’s lowest-cost hybrid power plant and distribution network in India and Tanzania. Husk developed a proprietary system by combining and synchronizing solar PV, biomass gasification system and batteries to deliver highly reliable, 24×7 power. It offers customers a flexible “pay-as-you-go” energy service, using a mobile-enabled smart metering system. Along with its strategic investors, Husk is poised to grow rapidly over the next four years and envisions adding over 300 mini-grids in India and Tanzania, deploying 15 MW of 100 percent renewable power plant assets that would eliminate 150,000 tons of CO2 per year (equivalent to eliminating 56 million liters of diesel per year). These mini-grids will serve over 100,000 customers.
“Together with our strategic partners, we are now confident of achieving our vision of becoming the world’s largest rural utility company providing 24/7, 100 percent renewable and affordable power to drive inclusive and sustainable development in growth markets.“, said Manoj Sinha, CEO and co-founder of Husk Power Systems. “We believe that mini-grids are the most capital efficient way to help reach 100 percent national electrification goals“.
Established in 2008, Husk pioneered an off-grid power generation and distribution solution to serve rural customers in Bihar, one of India’s most energy deficient states. Husk was the first company to use 100 percent biomass gasification from rice husks to generate electricity for households and small businesses. Husk has since evolved its business model and launched the world’s first hybrid powered mini-grid system that provides grid compatible 24/7 and highly reliable power to customers. The systems are scalable, grid compatible, and secure against theft from power generation to delivery.
Husk’s business model places the customer at the center of their operations, proactively advising them on productive uses of power. The company delivers reliable and affordable power to customers and has helped local entrepreneurs launch new businesses – including water purification plants and small manufacturing shops.
“We see Husk as a leading player providing reliable and affordable energy to off-grid and weak-grid communities in India and Africa and we believe they have a very credible business model“, said Brian Davis, Vice President, Integrated Energy Solutions for New Energies at Shell. “We believe that decentralised solutions will play an important role in providing productive energy to customers who currently lack reliable power. This investment is an important step for our Energy Access portfolio and we look forward to helping the business to scale and reach its growth aspirations“.
“Access to reliable electricity drives development and is essential for job creation, women empowerment and combating poverty. The private sector plays a central role when electrifying the rural areas of developing countries. We are very pleased to be part of Husk’s expansion, where our long-term capital and extensive experience of evolving sustainable businesses will give multiple effects for the whole society”, said Gerth Svensson, CEO of Swedfund.
“The highly efficient and replicable business model of Husk and its ability to provide productive use, fits perfectly into ENGIE Rassembleurs d’Energies of promoting sustainable energy for all. We are very excited to step further into collective decentralized solutions that will further enhance the social and environmental impact of our portfolio” said Anne Chassagnette, ENGIE Director of CSR and Vice president of ENGIE Rassembleurs d’Energies,
Note: * This transaction is subject to customary conditions precedent including regulatory approvals.
Husk is one of the world’s leading distributed utilities. The company provides reliable power to rural communities and businesses, entirely from renewable energy sources – 24 hours a day, 7 days a week – at a price they can afford. It offers customers a flexible ‘pay-as-you-go’ energy service, using a mobile-enabled smart metering system. It provides low-cost energy that matches the growing needs of our customers; for households, community services and productive uses. Its grid-compatible solution can be rolled out quickly and cost effectively to support national electrification plans.
About Swedfund International
Swedfund, owned by the Swedish state, provides risk capital, expertise and financial support for investments in local companies in the developing markets of Africa, Asia, Latin America and Eastern Europe. Our mission is poverty reduction through sustainable business, contributing to economic and environmental development as well as a positive impact to society. Swedfund’s investment strategy rests on three main pillars: impact on society, sustainability and financial viability. Since 1979 Swedfund has been engaged as an active, responsible and long-term investor in more than 260 companies worldwide.
Find out more at: www.swedfund.se/en
About Shell Technology Ventures
Shell Technology Ventures LLC is the corporate venture capital arm of Royal Dutch Shell plc (“Shell”). It supports Shell’s New Energies business which was created in 2016. New Energies focuses on two main areas: new fuels for transport, such as advanced biofuels and hydrogen; and power, which includes low-carbon sources such as wind and solar, as well as natural gas. Within the power portfolio, New Energies is also actively pursuing investments in scalable commercial businesses that expand energy access to communities who currently have no energy at all or unreliable supply.
Find out more at: www.shell.com/about-us/what-w…
Media contact: +44 207 934 5550
About ENGIE Rassembleurs d’Energies
ENGIE Rassembleurs d’Énergies is ENGIE’s social impact investment fund that invests in enterprises to provide access to sustainable energy for insecure populations. The mission of the fund is to invest in economically viable social projects sponsored by social entrepreneurs. The fund manages a portfolio of 18 companies active on 4 continents that employ 2,300 people and provide access to clean electricity for 2 million people as of the end 2017. Find out more at: www.engie.com/en/commi..