- After regulatory approvals, Shell is set to acquire hybrid solar power solutions, Daystar Power, to deliver carbon emission reductions.
- This is Shell's first power acquisition in Africa.
- With the acquisition, Shell seeks to address a critical energy gap for many who currently rely on diesel generators for backup power.
On Wednesday, September 28, 2022, Off-grid power service and hybrid solar power solutions provider Daystar Power announced its planned acquisition by international energy company Shell.
Daystar Power is present in Ghana, Nigeria, Senegal, and Togo and received $20 million in funding last year to boost its operations. The company had plans to increase its renewable energy generation capacity from 29 megawatts (MW) to 140MW by 2024.
It provides solar power solutions to commercial, industrial, and agricultural businesses and claims to offer a 30 per cent reduction in energy cost.
While the acquisition cost was not mentioned, the move is part of Shell's plan to expand its global renewable portfolio. According to Reuters, the oil giant earmarked up to $3 billion for its capital expenditure for renewables and energy solutions in 2022.
According to Shell's Executive Vice-President, Renewable Generation Thomas Brostrøm, "This deal marks our first power acquisition in Africa and a fundamental step for Shell in growing our presence in emerging power markets."
While renewable energy was only 6% of the company's revenue in Q2 2022, Daystar Power CEO Jasper Graf von Hardenberg said, "we have seen booming demand for solar energy in the African markets where we operate."
Interestingly renewable energy in Africa is set to make up about half of power generation growth in the sub-Saharan parts of the continent by 2040.