WEST AFRICA – Daystar Power, a provider of hybrid solar power solutions to businesses, has announced the successful completion of a US$20 million loan from the International Finance Corporation (IFC).
The loan will be used to invest in hybrid renewable energy systems by Daystar Power’s Nigerian subsidiary. The financing consists of a US$10 million subordinated loan from the Canada-IFC Renewable Energy Program for Africa and a US$10 million IFC local currency loan.
Daystar is also collaborating with the IFC’s Energy2Equal program, which is supported by the Canadian government, to address gender disparities and enhance women’s engagement in renewable energy, with a focus on leadership and technical positions.
“This facility is a major milestone for us. The funds will allow us to grow our installed capacity of solar projects and serve more Nigerian businesses in need of clean and affordable power,” said Jasper Graf von Hardenberg, CEO and Co-founder of Daystar Power.
“The funds will allow us to grow our installed capacity of solar projects and serve more Nigerian businesses in need of clean and affordable power.”Jasper Graf von Hardenberg – CEO and Co-founder, Daystar Power
By 2024, Daystar Power intends to increase its installed solar power capacity to 140MW, expanding its client base in the financial services, manufacturing, and agricultural industries. In Nigeria, the firm now manages and operates 150 power plants.
Founded in 2017 by the African venture builder Sunray Ventures, Daystar Power specialises in providing solar power and energy efficiency solutions for businesses in the commercial, industrial, and agricultural sectors that result in significant reduction of power costs, diesel consumption and pollution.
Daystar Power has raised US$62 million in funding this year, following a US$38 million series-B investment in January this year led by the Investment Fund for Developing Countries (IFU), a Danish development bank with the support of STOA, a French impact fund, and Morgan Stanley Investment Management.and a US$4 million financing for its Ghanaian subsidiary with DEG.
In West Africa, the rate of access to electricity is 52% on average, with power cuts of up to 80 hours per month, according to the World Bank’s 2018 report. Daystar Power has since been helping, along with other companies, to fill this gap.