Subject to regulatory approval, Shell Petroleum Development Company is set to acquire Daystar Power.
Daystar Power, which is one of the leading providers of hybrid solar power solutions to commercial and industrial (C&I) hubs in West Africa, announced the potential acquisition in a press release.
According to the energy provider, the acquisition will help Daystar Power to continue its growth in West Africa while expanding its presence to other African countries in East and Southern Africa.
The Lagos-based company has a target to increase its installed solar capacity to 400MW by 2025.
Daystar Power currently has an installed solar capacity of 32 Megawatts (MW).
This could make Daystar Power to become one of Africa’s leading providers of solar power solutions for commercial and industrial businesses.
The Chief Executive Officer of Daystar, Jasper Graf von Hardenberg disclosed that Daystar Power needed more capital to expand operations to meet the rising demand for solar energy and the choice of Shell as the new parent company comes at the right time.
Jasper further stated that Shell’s strong balance sheet and long history in Africa will help to take Daystar to a new height.
On the other hand, Shell’s Executive Vice-President, Renewable Generation, Thomas Brostrøm noted that the deal will be Shell’s first power acquisition in Africa.
He noted further that the deal is a fundamental step for Shell in growing its presence in the emerging power market.
“We have had a long and established presence in West Africa and with Daystar Power, we are taking our first steps into the renewable power space,” he said.
“Daystar Power has a loyal customer base and a promising growth outlook, and by combining our efforts and expertise, I believe we can make a real difference in the energy transition, for West Africa and beyond.” Shell’s Executive Vice-President concluded.
Investors King learnt that Daystar Power currently has a presence in Nigeria, Ghana, Senegal and Togo. The company also received $20 million in funding last year to boost its operations.