The Abuja Electricity Distribution plc (AEDC), on Thursday, signed a tripartite agreement with Daystar Power Solutions Limited (Daystar Power) and The Wood Factory Limited (Wood Factory) for the provision of the first grid-connected and solar hybrid power solution for commercial and industrial customers in Nigeria.
This follows the launch of the first interconnected mini-grid power solution for communities in Nigeria by AEDC and its strategic partners in Toto, Nasarawa State, in November 2023.
A statement seen by BusinessDay showed that under the agreement, the AEDC is expected to provide 18 hours of reliable electricity supply to Wood Factory while Daystar Power will provide six hours of solar-powered electricity to Wood Factory.
Commenting on the agreement, Christopher Ezeafulukwe, the managing director of AEDC, stated that the project is a product of the company’s questioning of the status quo in the resilient push and belief in using diversified energy sources to serve its customers.
According to him, the integrated power solution is expected to yield an estimated 44 percent reduction in energy costs and a 76 percent annual decrease in carbon emissions for Wood Factory.
“The unique value offering is in furtherance of AEDC’s transformational strategic objective of redefining customers’ experience by providing reliable electricity supply to both existing and new customers, including the unserved and underserved customers. Under the ongoing transformation of AEDC, the management of the company is driving its repositioning as a clear leader amongst the power distribution companies (DisCos) in Nigeria.
“We are excited about the great opportunities that the transformation and turnaround of AEDC is giving us to serve our customers, both new and existing, in more delightful ways. This project is a product of our consistent questioning of the status quo in the resilient push of our conviction and belief in using diversified energy sources to serve our customers better, while closing the supply gap in our market,” he said.
Ezeafulukwe further stated that having previously commissioned an integrated power solution to serve some unserved communities in the company’s network, the current project is focused on serving industrials and commercials, thus repositioning AEDC to serve all bands of customers within its network better.
“The two projects also confirm to the world, the readiness of AEDC to enter into complementary partnerships that will add great value to the Nigerian electricity market.
“AEDC has been in partnership with the Rocky Mountain Institute (RMI) through which the United States Trade and Development Agency (USTDA) provides funding for feasibility study grants and facilitating the optimisation of energy supply through distributed solar energy and grid power,” he said.
Jasper Graf von Hardenberg, CEO of Daystar Power, expressed his excitement about the innovative interconnected solar installation, stating, “Working together with DisCos, we can provide reliable and affordable power to Nigerian businesses which will save on energy costs to reinvest in their operations. Our partnership with AEDC supports this position. It is just the beginning; we are looking forward to developing more hybrid solar projects for C&I customers in partnership with the likes of AEDC.”
In his remarks, Mohamed Akar, director and general manager of The Wood Factory said, “We’re thrilled that we’ll soon be switching to a reliable integrated power solution to power our factory. For many years, we’ve operated on diesel generators, which is hardly sustainable or affordable. We believe that the future of our business has become brighter with this new partnership with AEDC and Daystar.”