Sub-Saharan African countries and some parts of Asia are set to benefit from the installation of over 5, 000 mini-grid electricity that may benefit 11 million people.
According to the World Bank, mini-grids have the potential to provide power to nearly 500 million people. To do that, over 200,000 mini grids and $200 billion would be needed. However, today there are only 19,000 mini grids globally and the industry has only attracted $5 billion.
To bridge the gap, the United Nations and Husk Power System are targeting underserved rural communities as well as small businesses.
Implemented by Hush Power System, the development designed as Energy Compact is expected to scale the rural clean energy market and support the Sustainable Development Goal (SDGs), which aimed at access to affordable, reliable, clean and modern energy.
The move is also to advance progress on the energy transition and net-zero emissions on the backdrop of UN high-level dialogue on energy and COP26 in 2021, spokesperson for the company, William Brent said in a release yesterday.
The mini grids would eventually connect about one million people, power 500,000 micro, small and medium-sized enterprises (MSMEs), as well as lead to the installation of 500MW of rural commercial and industrial solar and five million energy efficient appliances.
UN Energy programme manager, Kanika Chawla said the energy compact showcases the business opportunity presented by the global energy transition, and how private enterprises could drive accelerated action on ending energy poverty, expand renewable energy solutions for consumptive and productive load, and improve the adoption of energy efficiency solutions by end consumers.”
Husk Power CEO and Co-founder Manoj Sinha, said: “The mini grid industry is starting to scale and is demonstrating significant socio-economic impact, but we still have a long way to go to reach our full potential.
“Our partnership with the UN is intended to put forward a more ambitious vision not only for Husk, but the entire mini grid industry and by doing so, to mobilise a much higher level of climate finance and more supportive government regulation and policy.”