Shell has struck a milestone deal to buy West African solar company Daystar Power, a milestone agreement for the supermajor because it represents its first power business acquisition in Africa.
Lagos-based Daystar, which provides hybrid solar power solutions to commercial and industrial (C&I) businesses, said today that it had been bought by Shell for an undisclosed amount in a deal subject to regulatory approvals.
Daystar’s co-founders and management team will continue to grow operations in its key West African markets, while expanding its presence to east and southern Africa.
The company’s goal is to boost its installed solar capacity to 400 megawatts by 2025 and become one of Africa’s leading providers of solar power solutions to the C&I market .
“We have seen booming demand for solar energy in the African markets where we operate,” said Jasper Graf von Hardenberg, chief executive and co-founder of Daystar Power. “That has been reflected in our growth. We are on track to increase our installed solar capacity by 135% in 2022.”
He said that “as part of Shell we will be able to execute our mission even faster to deliver carbon emission reductions and power cost savings to businesses across Africa”.
Speaking to Reuters, von Hardenberg said that for Daystar to become a pan-Africa power provider it “requires an investor with the same vision; someone with sufficient firepower to finance this growth”.
Shell head of renewable generation Thomas Brostrom said: “This deal marks our first power acquisition in Africa and a fundamental step for Shell in growing our presence in emerging power markets.
“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.
“As we do this, we’re helping to address a critical energy gap for many who currently rely on diesel generators for backup power,” he remarked.