Stockholm (NordSIP) – Swedfund, the Swedish development financier providing funding, expertise and support for investments in emerging markets, has invested $20 million in Husk Power Systems, a leading mini-grid electrification company operating in rural regions in India and Tanzania. The investment is being made together with Shell Technology Ventures LLC and ENGIE Rassembleurs d’Energies.
Husk Power Systems began operations in Bihar and Uttar Pradesh in 2008, and has been operating in Tanzania over the past few years. Husk produces and distributes renewable electricity via a hybrid-type of mini-grid whose main power source is daytime solar cells. A biomass plant, whose surplus energy is stored in batteries that provide electricity to customers during night-time, supplements the daytime solar cells.
“Access to reliable electricity spurs development and is central to creating jobs, increasing gender equality and reducing poverty,” commented Swedfund CEO Gerth Svensson in a press release. “We are very pleased with the opportunity to be part of Husk’s expansion, where our long-term capital and extensive experience with developing sustainable companies will produce a multiplier effect that will benefit society as a whole.”
1.2 billion people globally lack reliable electricity. The Swedfund/Shell/ENGIE investment equips Husk Power Systems for further expansion, with over 300 additional mini-grids planned in India and Tanzania corresponding to 15 MW of renewable energy, or a reduction of 150,000 tonnes of CO2 emissions annually.
“Together with our strategic partners, I am convinced we can achieve our vision of becoming one of the world’s largest power companies offering rural areas 100% renewable energy at a reasonable price, in ways that also promote inclusive and sustainable growth in development markets,” added Husk CEO Manoj Sinha.
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