To increase the spread of its solutions to businesses in West Africa, Daystar Power, a leading provider of hybrid solar power solutions, has recently secured a facility of $20 million from the International Finance Corporation (IFC) to fund its project pipeline in Nigeria.
This deal is coming on the heels of a $38 million series-B fundraise in January and a $4 million financing for its Ghanaian subsidiary with DEG. This latest funding brings the total amount raised by the company this year to $62 million.
According to the terms of the deal, the investment will come in two equal tranches. The investment is structured as a $10 million subordinated loan from the Canada-IFC Renewable Energy Program for Africa and a $10 million local currency loan from IFC.
The IFC will provide the loan to Daystar Power’s Nigerian subsidiary – Daybreak Power Solutions – for investing in hybrid renewable energy systems.
Daystar is also working with the Canadian-funded IFC program Energy2Equal to close gender gaps and increase women’s participation in the renewable energy sector, focusing on leadership roles and technical positions.
Founded in 2017 by Sunrah Ventures, Daystar Power is an off-grid power service provider whose solutions, “Solar-as-a-Service” and “Power-as-a-Service” provide clean and reliable power while significantly reducing overall power costs for clients.
“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.” Jasper Graf von Hardenberg, CEO and Cofounder of Daystar Power remarked.
Adding that “we gain more than just capital. IFC brings a wealth of in-depth knowledge of renewable energy projects and project finance in emerging markets. We’re delighted to work with them.”
Daystar Power has 29 megawatts (MW) of installed solar power capacity to date. It plans to expand that capacity to 140MW by 2024 and grow its client base in the financial services, manufacturing, and agricultural sectors. The IFC investment is important to this ambition.
Daystar Power plans to expand its installed solar power capacity to 140MW by 2024, growing its client base in the financial services, manufacturing, and agricultural sectors. The company currently manages and operates 150 power installations in Nigeria.
According to reports, the rate of access to electricity in West Africa is 52% on average, with power cuts of up to 80 hours per month. Daystar Power, a Nigerian supplier of solar off-grid, has since been helping other companies fill this gap. The company, which started in Nigeria, is now active in Ghana, Senegal, and Togo as well, with a representative office in Ivory Coast