Page 12 - AfrElec Week 02 2021

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installed solar capacity across the continent to
date, and said it hopes to expand to 100MW.
Daystar previously worked with the Nigerian
Agricultural Bank to install PV systems at the
Bank of Agriculture’s 158 nationwide locations
and develop and operate solar power solutions
for rural areas in the country.
Graf said the energy provider has seen “a
more than 50-fold increase in power-as-a-
service revenue” over the past two years as a
result of offering power to commercial and
industrial (C&I) clients.
megawatts of electricity, meeting an earlier engage with and influence project and service “African businesses are realising that solar
target set by the Federal Government. providers including utilities companies. power — stand-alone or in tandem with a
The projection could however remain According to her, this will improve their second power source — is a superior energy
elusive without pragmatic framework, which ability to coordinate with and facilitate alternative to the often-unreliable grid or too
must be implemented commercially and activities linked to the scaling up of the expensive, polluting diesel generators.”
politically. Seven years after the electricity goals and objectives of the reform and the Thomas Hougaard, vice president of IFU
sector was privatized average generation has ability to work collaboratively with multiple in sub-Saharan Africa, said the electricity
been dismal, hovering around 3,500WM government agencies and others. provider could accelerate the adoption of
although available capacity stands at about “Seven years post privatisation, it renewable energy in a number of Africa’s fast-
8,000WM as at 2020. is imperative for the sector to rejig the growing markets.
The Executive Secretary of the Association existing structures and imbue private “We believe that Daystar Power has the
of Power Generation Companies (APGC), sector partnerships. Existing institutions right elements — the client base, technology,
Joy Ogaji, said progress would be made prior to the reform has remained the same engineering expertise, and executive
if policymakers, regulators and relevant notwithstanding the fact that the market is leadership — to scale off-grid solar across
stakeholders join hands in recognising and largely private sector driven with 100 per cent West Africa,” he said.
paying for available capacity, going by extant ownership of the Generation and 60 per cent Investment vehicle STOA, which was
pacts between GenCos investors and the ownership of the distribution assets.” among the handful of financial institutions
Federal Government. contributing to Daystar’s Series B funding,
She said there was need to jettison the plans to invest more than 50% of its capital
practice of variabilising power generated as in both African enterprises and renewable
the basis for power delivery invoice, adding SOL AR energy. Charles-Henri Malecot, STOA’s
that quality data ownership both by the chief executive, said he is “excited to start
regulator and operators remained critical key. Daystar secures $38 million this journey alongside Daystar, which is
Ogaji equally noted the need for customer perfectly positioned to provide reliable,
population, metered customers, independent for west African expansion environmentally friendly and cheap electricity
classification of customers as well as collection to businesses across west Africa”.
efficiency details, tariff performance, West African off-grid solar electricity supplier West African states have been working
validation and independent assessment of Daystar Power has raised $38 million to for some time to build a solar generation
market performance. expand its operations across the continent. corridor across the region, with the
The companies also called for the The Series B funding round was sourced African Development Bank announcing
urgent review of the Electric Power Sector from development finance institutions plans to facilitate 10GW of solar across
Reforms Act (EPSRA), the Multi-Year Tariff such as Denmark’s Investment Fund for the Sahel region of Sub-Saharan Africa
Order, Orders made by Nigerian Electricity Developing Countries (IFU) and Morgan in 2018. The following year Nigeria, Mali,
Regulatory Commission (NERC) as well as Stanley Investments. It will be used to help Ghana and the remaining members of the
policies, market rules and other governance the company accelerate its regional expansion Economic Community of West African
documents in the Nigerian Electricity Supply in Nigeria, Ghana, Côte d’Ivoire, Senegal and States (ECOWAS) were on the lookout for
Industry. Togo. The company also received $10 million consultants to assist in the development of
Ojagi added that there was also need to from a previous funding round by Verod a solar corridor in the region, with the aim
conduct a viable and independent stress Capital and Persistent Energy. of installing 10GW between Senegal and
test on the Generation, Distribution and Daystar’s chief executive officer and co- Nigeria. The Nigerian government has itself
Transmission capacities to enable proactive founder, Jasper Graf von Hardenberg, said in set a target of sourcing 30% of the country’s
planning and building of the sector. a statement on January 12 that the company energy demand from renewables by the end of
They also called for immediate separation hopes to replace diesel generators that are the decade.
and unbundling of the Independent System “unreliable” and “too expensive” with clean
Operator (ISO) and Transmission as well as energy.
an empirical method of proving claims. The company, which is owned by
Ogaji also called for revamping of agencies venture builder Sunray Ventures, focuses on OFF- GRID
and imbuing into them fresh and vibrant generating solar electricity through medium
commercially minded and progressive and small-scale systems from 20KW to up to Gridworks seeks $35mn in
business wise capacity with the ability to 2MW capacity. Daystar oversees 23MW of

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