Today, Nigeria-based hybrid renewable energy provider, Daystar Power, has received a $20 million investment from the International Finance Corporation(IFC), a subsidiary of the World Bank Group.
This follows an announcement made by IFC in April 2021 that they were considering giving a $20 million loan to Daystar Power.
The funding, which comes in two ways, will be used to carry out more renewable energy projects in Nigeria, where the company presently operates 150 solar power systems.
It will also advance its mission to expand its current power capacity from 29 megawatts (MW) to 140MW by 2024.
The first half of the loan would be disbursed in local currency (₦4.2 billion) to Daybreak Power Solutions, the Nigerian subsidiary of the company.
The second half would be an ancillary loan funded by the Canada-IFC Renewable Energy Program for Africa, which was established to boost private sector investment in the industry on the continent.
Currently, Daystar Power provides solar power solutions to businesses in the commercial, industrial, and agricultural sectors and claims to offer a 30 per cent reduction in energy cost.
Clients are serviced via a hybrid model after paying a certain amount. This combines solar power supply and battery storage, and clients can integrate this model into their existing power channels like an electrical grid or diesel/fuel generators.
Founded in 2017 to reduce the cost of electricity and tackle the issue of epileptic power supply faced by businesses in Africa, Daystar Power has since expanded its operations. Currently, it has branches in Nigeria, Ghana, Senegal and Togo.
Daystar Power's CEO and Co-founder, Jasper Graf von Hardenberg, believes that the funds will multiply their installed capacity of solar projects and serve more Nigerian businesses in need of clean and affordable power.
This fund complements their former investments of $42 million. With a $38 million Series B raise in January and a $4 million funding for their Ghana expansion, this brings it to $62 million in 2021.
A sustainable power supply is essential to nation-building. Startups and small businesses in Nigeria and Africa at large have long suffered the problem of insufficient electricity, and funding for renewable energy companies will go a long way in helping to diminish the dastardly economic effects of this problem.