Hydrobox, a renewable energy company specializing in small-scale hydropower solutions, has secured $9.5 million in debt financing from FMO, the Dutch Entrepreneurial Development Bank, and EDFI Management Company through ElectriFI, an EU-backed impact investment facility. This funding will enable Hydrobox to accelerate its mission of providing reliable, affordable electricity to underserved rural communities in Kenya.
The investment will fund eight small hydropower projects across four mini-grids in Kenya, aiming to serve more than 10,000 people and businesses. Hydrobox’s innovative approach combines run-of-river hydropower with solar photovoltaic (PV) systems to create resilient, off-grid mini-grids. This dual energy strategy ensures continuous power supply despite seasonal fluctuations, supporting communities year-round.
The mini-grids will cater to a mix of anchor clients such as factories and farms, small businesses like schools and hospitals, and households. This diversified customer base stabilizes revenues from large consumers while keeping energy costs low for smaller users, fostering economic development in rural areas.
Hydrobox’s containerized hydropower plants are designed for efficiency and adaptability. The modular systems lower construction costs, accelerate deployment timelines, and enable installation in remote, off-grid locations. Integrated Internet of Things (IoT) technology ensures real-time monitoring and management, enhancing operational efficiency and minimizing downtime.
“Our mini-grids integrate hydro and solar power, providing a reliable and sustainable energy solution for rural communities,” said Thomas Poelmans, CEO and co-founder of Hydrobox. “This investment validates our efforts and allows us to expand our impact, with the goal of reaching one million users by 2030.”
Beyond delivering clean energy, Hydrobox’s projects aim to stimulate local economies. By providing electricity to businesses and households, the company supports job creation, improved healthcare, and educational services. Moreover, the company prioritizes environmental sustainability by utilizing small, run-of-river hydropower systems that preserve local ecosystems.
Hydrobox collaborates with local stakeholders and regulatory bodies to ensure responsible implementation and long-term benefits for communities.
The investment reflects a shared commitment among the project partners to address Africa’s energy gap through sustainable solutions.
Michael Jongeneel, CEO of FMO, highlighted the importance of private-sector involvement in advancing energy access:
“We believe a strong private sector is key to fostering economic and social development. Hydrobox’s innovative, locally-rooted model represents the kind of solution needed to make a tangible impact in rural communities.”
Rodrigo Madrazo, CEO of EDFI Management Company, added:
“Hydrobox’s combination of hydropower and solar PV exemplifies the adaptability required to build climate-resilient energy systems in underserved areas. We are proud to support this partnership and its transformative potential.”
Founded by Belgian entrepreneur Thomas Poelmans and Kenyan entrepreneur John Magiro, Hydrobox operates five power stations across three mini-grids in Kenya, with an additional 10 megawatts (MW) of projects in development across Kenya and the Democratic Republic of Congo (DRC).
The company’s vision is to expand its clean energy solutions across East and Central Africa, contributing to the region’s socio-economic growth and reducing dependency on fossil fuels.
With this latest funding, Hydrobox is poised to set new benchmarks for scalable, locally-driven renewable energy projects, paving the way for sustainable electrification in Africa’s rural heartlands.