Husk Power Systems has announced that it achieved profitability with its operations in Nigeria and India.
As pioneered the first renewable energy minigrid in 2008 and now operates the largest fleet of community minigrids across Africa and Asia, the company is the world’s first minigrid company to achieve this major industry milestone.
The company became EBITDA positive in fourth quarter (Q4 2022) in its two primary markets, Nigeria and India.
EBITDA (earnings before interest, taxes, depreciation, and amortization) is a widely used measure of corporate profitability.
By achieving profitability, Husk has sent a clear signal to the market that rural minigrids are a fully bankable asset class, as well as an important contributor to net-zero growth for the more than 3 billion people – and countless small businesses and farmers – that are still without access to reliable electricity in rural Sub-Saharan Africa and Asia.
The Co-Founder and CEO, Husk Power, Manoj Sinha, in a statement said, “When I took over the reins of Husk in 2014, we underestimated the amount of time and effort it would take to discover the right business model, right team and right technology platform to build a commercially viable minigrid company on two continents.
“It took grit and innovation to arrive here – at a profitable and scalable minigrid company.”
The Board Chairman, Husk Power, Mr. Brad Mattson in a statement said, “Husk has proven that the rural minigrid business model works, in Asia and in Africa, and in off-grid, under-the-grid, and grid-interconnected communities. It works and it is robust,”
“We have already scaled 10X, and are poised to scale another 10X. We urge the industry to embrace the roadmap Husk followed. If funders and governments embrace the minigrid sector and this roadmap for success, together we can not only end energy poverty, but also lay the foundation for a rural industrial revolution.”
In 2022, Husk launched its Nigeria Sunshot Initiative, with a target of building 500 minigrids by 2026 that benefit more than two million people, while also displacing 25,000 diesel and gasoline generators used by rural businesses and farmers.
The company currently operates 12 off-grid minigrids in Nigeria, benefiting 50,000 people, and expects to expand 5X nationally by the end of 2023.
An active participant in the Nigeria Electrification Project (NEP), Husk is making a significant contribution to Nigeria’s energy transition goals and to reducing carbon emissions.
The minigrids also power schools and health clinics, contributing to the broader Sustainable Development Goal (SDG) agenda.
The profitability milestone was achieved because of two factors: 1) Husk’s unique platform approach, which addresses the entire rural energy ecosystem (besides electricity and appliance sales, it also installs rooftop solar for businesses.