Lagos-based Daystar Power has announced that it will be acquired by Shell subject to regulatory approvals, to deliver carbon emission reductions and power cost savings to commercial and industrial (C&I) businesses across Africa.
Speaking about the acquisition, Jasper Graf von Hardenberg, CEO, and Co-founder of Daystar Power says; “We have seen booming demand for solar energy in the African markets where we operate. That has been reflected in our growth: we are on track to increase our installed solar capacity by 135% in 2022.
“As part of Shell, we will be able to execute our mission even faster to deliver carbon emission reductions and power cost savings to businesses across Africa,” he said.
Daystar says it will continue to operate as a standalone business and the company’s headquarters will remain in Lagos, Nigeria.
Daystar Power is a commercial and industrial (C&I) solar provider. The C&I model means that the client does not have to pay for equipment or deal with maintenance. Daystar Power has said in the past that their installations for industries can go above 10,000 volts. Thereafter, Daystar installs transformers to step up the low voltage from solar plants to meet the power requirements for industrial activities.
Recent activities at Daystar Power
Daystar Power already has industrial manufacturing clients such as the Nigerian Bottling Company (NBC), 7Up Nigeria, Seplat Energy, and UAC Foods Nigeria.
As of August 2022, some of the company’s installations include Four NBC factory installations across Nigeria, a 107kWp installation for a Seplat Energy factory in Delta State, and a 100kWp solar plant for the Brazilian embassy in Lagos.
A 600kWp solar plant at UAC Swan in Jos, Plateau State, an 18kWp solar unit at Siloam Hospital, Kumasi, Ghana, and a 997kWp solar farm for Atlantic Shrimpers Limited Badagry, Lagos.
A 600kWp solar plant at Primlaks Group, Badagry, Lagos, a 550kWp solar system at Grand Square Abuja, and a 230kWp solar system at Grand Square, Kano.
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Daystar Power has announced plans to expand its business into Eastern and Southern African markets following its acquisition by Shell. The renewable energy power company currently operates in Nigeria, Ghana, Senegal, and Cote D’Ivoire.
An expansion into Southern African markets holds a huge potential for the company, especially in South Africa, where the government plans to double its procurement of renewable energy to more than 5,000 megawatts.
An expansion into Eastern African markets will also prove to be beneficial to Daystar Power because an increase in environmental awareness and regulations and decreasing cost per kilowatt of electricity generated are expected to boost the market in the region.
According to Mordor Intelligence, the East African renewable energy market is expected to grow at a compound annual growth rate (CAGR) of more than 6.5% over the period of 2020-2025.
What you should know
According to the World Bank (WB)’s global solar atlas, Africa’s solar potential is a unique opportunity to provide affordable, reliable, and sustainable electricity to a large share of humanity where improved economic opportunities and quality of life are the most needed”.
The International Energy Agency (IEA) says that Africa has 60% of the world’s best solar resources, but only 1% of solar generation capacity.
According to Statista, solar capacity in Africa grew 13% between 2019 and 2020.