1. Home
  2. Middle
  3. East
  4. &
  5. Africa
  6. Daystar to seek $100m over three years for West African solar projects
Daystar to seek $100m over three years for West African solar projects

Daystar to seek $100m over three years for West African solar projects

0
0

West Africa hybrid solar power solutions provider Daystar Power plans to raise about $100m within the next three years to satisfy existing client demand.

“The market size and funding gap is huge, and our role in bridging this gap will involve us continuously raising funds,” Olaedo Osoka, Daystar’s CEO for Ghana, tells The Africa Report. The funding will mostly be debt, and the amount sought in each fundraising will typically be around $20m, she adds.

Daystar was founded in 2017 by Sunray Ventures and is active in Nigeria, Ghana, Togo and Senegal, with a representative office in Côte d’Ivoire. In January, Daystar raised $38m from investors led by Danish development finance institution The Investment Fund for Developing Countries. The funding raised will be used to expand operations in GhanaSenegal and Togo, says Osoka.

Solar costs

The cost of power in West Africa has curtailed the growth of competitive businesses and industries, Osoka says, adding that Daystar’s solutions to reduce typical power costs by up to 30%. She’s confident on the outlook for this year, and says the Covid-19 pandemic has intensified the need for reliable and affordable electricity.

  • “Indications into 2021 show an increased demand for our services,” says Osoka.
  • “Our expectation is to grow exponentially this year.”

Daystar Power’s clients pay a flat monthly fee or a variable tariff per kilowatt hour to outsource the management of their power systems.

Services include a power audit and assessment of energy needs, proposal of a solution, installation, operation and maintenance. Customers do not incur capital expenditure or pay up-front costs.

Anand Gupta Editor - EQ Int'l Media Network