Daystar Power, a provider of hybrid solar power solutions to businesses in West Africa, said Tuesday that it has closed a $20 million deal from the International Finance Corporation (IFC).
Following its $38 million series-B fundraise in January and a $4 million financing for its Ghanaian subsidiary with DEG, Daystar Power has secured $62 million in financing this year.
IFC will provide the loan to Daystar Power’s Nigerian subsidiary for investing in hybrid renewable energy systems.
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. 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 with a focus on leadership roles and technical positions.
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Daystar Power plans to expand its installed solar power capacity to 140 megawatts (MW) 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.
“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. But 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,” Jasper Graf von Hardenberg, CEO and Co-founder of Daystar Power said.
Daystar is an off-grid power service provider, offering hybrid power solutions to commercial and industrial businesses in West Africa.
The company’s solutions “Solar-as-a-Service” (100% solar power) and “Power-as-a-Service” (hybrid power solutions with battery storage) provide clean and reliable power while significantly reducing clients’ overall power costs.
Daystar Power’s clients pay a flat monthly fee or a variable tariff (per kilowatt-hour) for premium power services, which include a power audit and assessment of energy needs, a bespoke proposal, installation, and full operation and maintenance.
Clients do not incur any capital expenditure and do not pay up-front costs. By outsourcing the management of their power systems, Daystar Power clients are able to focus more on running their core businesses.
Daystar Power counts the region’s leading industrial and commercial companies among its client base and is active in Nigeria, Ghana, Togo, and Senegal with a representative office in Cote d’Ivoire.
Founded in 2017, by the African venture builder Sunray Ventures, Daystar has 29 MW of installed power capacity.