The renewable energy arm of London-based supermajor Shell has brought closure to the purchase of Daystar Power, a West African hybrid solar power solutions provider serving commercial and industrial businesses in a landmark deal marking the first of such acquisition in Africa.
First announced in late September, the deal, having scaled regulatory hurdles, is the latest phase of Shell’s march towards providing clean energy via carbon emissions reduction.
“We are thrilled about the completion of this major milestone,” said Jasper Graf von Hardenberg, CEO and Co-founder of Daystar Power in a Friday statement obtained by PREMIUM TIMES.
“Given the urgency of the energy crisis and the pressure on businesses across Africa, we are deeply committed to our mission to reduce energy costs and carbon emissions. As part of Shell, we can grow faster in delivering clean and affordable energy to our customers.”
Africa has 60 per cent of the world’s best solar resources, according to the International Energy Agency, but only has the capacity to generate 1 per cent.
The agency estimates the continent requires $190 billion of investment a year between 2026 and 2030 in order to attain its energy and climate goals.
Daystar Power is setting sights on scaling its installed solar capacity to 400mw from 32mw come 2025 and will operate as a wholly owned subsidiary of Shell under Shell’s Renewables & Energy Solutions business, according to the statement.
Daystar Power expects to expand beyond Nigeria into markets in East and Southern Africa especially South Africa, where solar demand is rapidly increasing.
It said earlier in the year it is holding talks with financiers to raise $100 million in 2023 to drive expansion following an explosion of demand in Nigeria.
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