The energy firm will fund, own and operate the projects and is seeking governments that are willing to provide the company with a 20-to-25-year concession to own projects and provide consumers with cost-reflective tariffs.
“As LDC governments in Sub-Saharan Africa look to roll out integrated energy systems that will be both ﬁscally sound and climate resilient, Husk is ready for action. We have the scale and a proven business model, and it is now time for SDG7-focused public-private partnerships to move from pilot phase to full-ﬂedged market interventions that can achieve radical scale,” Manoj Sinha, Husk Power’s Co-Founder and CEO, said.
The launch of the mechanism comes at a time a lack of adequate electricity is stalling progress across some 33 LDCS in Africa where on average only 36% of the population have access to electricity.
Minigrids have the potential to accelerate consumer access to energy while alleviating poverty, improving health and education and creating jobs and income opportunities, according to a press statement released by Husk Power.
The company has deployed 200 minigrids which are in operation in India, Tanzania and Nigeria and has a target increase the portfolio to 400 in the next 12 months.