Mini-grid company announces profitability in Africa, Asia

Husk Power Systems has said it has achieved profitability in Africa and Asia after becoming EBITDA positive in the fourth quarter of 2022 in its two primary markets, Nigeria and India.

Reportedly operating the largest fleet of community mini-grids across Africa and Asia, the company regarded itself in a release as the world’s first mini-grid company to achieve the milestone.

EBITDA (earnings before interest, taxes, depreciation, and amortization) is a widely used measure of corporate profitability.

Co-Founder and CEO, Manoj Sinha, said the company had 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 mini-grid company on two continents

“It took grit and innovation to arrive here – at a profitable and scalable mini-grid company,” Sinha said.

In 2022, Husk launched its Nigeria Sunshot Initiative, with a target of building 500 mini-grids by 2026 that benefit more than 2 million people, while also displacing 25,000 diesel and gasoline generators used by rural businesses and farmers.

The company currently operates 12 off-grid mini-grids 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 in reducing carbon emissions. The mini-grids also power schools and health clinics, contributing to the broader Sustainable Development Goal (SDG) agenda.

The company linked the profitability milestone to its unique platform approach, which addresses the entire rural energy ecosystem (besides electricity and appliance sales, it also installs rooftop solar for businesses, and offers energy-as-a-service for drinking water, agro-processing, etc.); and its relentless focus on technology and business innovation, which has allowed Husk to boast the lowest cost of delivered energy and highest average revenue per user in the industry.